Ask Question
15 January, 03:28

A portfolio comprises two stocks, A and B, with equal amounts of money invested in each. If stock A's stock price increases and that of stock B decreases, the weight of stock A in the portfolio will increase. True False

+1
Answers (1)
  1. 15 January, 03:34
    0
    True

    Explanation:

    When valuing the stock in portfolio, as for weighted average company considers the cost, whereas investor considers the market price, but in a portfolio of investor with weights as per market price the weight of stock increases provided other factors remain constant.

    Therefore, here weight of Stock A will increase, accordingly as in comparison to Stock B its value has increased.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A portfolio comprises two stocks, A and B, with equal amounts of money invested in each. If stock A's stock price increases and that of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers