Use the Information Below for the Following Problem(S)
Assume That

question 4

Multiple Choice

Use the Information Below for the Following Problem(S)
Assume that you hold a two stock portfolio. You are provided with the following information on your holdings:
$$\begin{array} { c c c c } \text { stack } & \text { shares } & \text { Price(t) } & \text { Price } ( \mathrm { t } + 1 ) \\\hline 1 & 15 & 10 & 12 \\2 & 25 & 15 & 16\end{array}$$
-Refer to Exhibit 1.8.Calculate the market weights for stock 1 and 2 based on period t values.

• A) 39% for stock 1 and 61% for stock 2
• B) 50% for stock 1 and 50% for stock 2
• C) 71% for stock 1 and 29% for stock 2
• D) 29% for stock 1 and 71% for stock 2
• E) None of the above

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