Portfolio weights are found by_________________.
A. dividing standard deviation by expected value
B. calculating the percentage each asset is to the total portfolio value
C. calculating the return of each asset to total portfolio return
D. dividing expected value by the standard deviation
Answer: Option B
Solution (By Examveda Team)
Portfolio weights are found by calculating the percentage each asset is to the total portfolio value. A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds.
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