Answer:
Weight of Golden Seas in the portfolio = 1.40%
Weight of Jacobs and Jacobs in the portfolio = 2.42%
Weight of MAG in the portfolio = 88.94%
Weight of PDJB in the portfolio = 7.24%
Explanation:
This can be done as follows:
Step 1: Calculation of value of each stock
Value of stock can be calculated using the following formula:
Value of a stock = Price per share * Number of shares outstanding................ (1)
Using equation (1), we have:
Value of Golden Seas = $14 * 1.43 millions = $20.02 millions
Values of Jacobs and Jacobs = $24 * 1.44 millions = $34.56 millions
Value of MAG = $43 * 29.52 millions = $1,269.36 millions
Values of PDJB = $9 * 11.48 millions = $103.32 millions
Step 2: Calculation of value of the portfolio
This can be obtained by adding the values of all the stocks in step 1 as follows:
Value of the portfolio = Value of Golden Seas + Values of Jacobs and Jacobs + Value of MAG + Values of PDJB = $20.02 millions + $34.56 millions + $1,269.36 millions + $103.32 millions = $1,427.26 millions
Step 3: Calculation of weight of each stock in the portfolio
The weight of each stock in the portfolio is obtained as the values of each stock divided by the value of the portfolio. This can be calculated as follows:
Weight of Golden Seas in the portfolio = $20.02 millions / $1,427.26 millions = 0.0140, or 1.40%
Weight of Jacobs and Jacobs in the portfolio = $34.56 millions / $1,427.26 millions = 0.0242, or 2.42%
Weight of MAG in the portfolio = $1,269.36 millions / $1,427.26 millions = 0.8894, or 88.94%
Weight of PDJB in the portfolio = $103.32 millions / $1,427.26 millions = 0.0724, or 7.24%
