You buy 

115115 

shares of 

TidepoolTidepool 

Co. for 

​$4545 

each and 

185185 

shares of 

MadfishMadfish​, 

​Inc., for 

​$1515 

each. What are the weights in your​ portfolio?

Question content area bottom

Part 1

The weight of 

TidepoolTidepool 

Co. stock in the portfolio is 

enter your response here​%. 

 ​(Round to two decimal​ places.)

To find the weight of each stock in the portfolio, we first calculate the total value of the investment in each stock, then find the proportion of each stock's value in the overall portfolio.

### Step 1: Calculate the value of each investment.
1. **Tidepool Co.** investment value:
   \[
   115115 \text{ shares} \times 45 \, \text{dollars/share} = 5180175 \, \text{dollars}
   \]
2. **Madfish Inc.** investment value:
   \[
   185185 \text{ shares} \times 15 \, \text{dollars/share} = 2777775 \, \text{dollars}
   \]

### Step 2: Calculate the total portfolio value.
\[
\text{Total Portfolio Value} = 5180175 + 2777775 = 7957950 \, \text{dollars}
\]

### Step 3: Calculate the weight of each stock in the portfolio.

1. **Weight of Tidepool Co.:**
   \[
   \text{Weight of Tidepool} = \left( \frac{5180175}{7957950} \right) \times 100 \approx 65.07\%
   \]

2. **Weight of Madfish Inc.:**
   \[
   \text{Weight of Madfish} = \left( \frac{2777775}{7957950} \right) \times 100 \approx 34.93\%
   \]

### Final Answer:
- The weight of **Tidepool Co.** stock in the portfolio is **65.07%**.

Would you like further details on the calculations? Here are some follow-up questions you might find useful:

1. How do we calculate the weight of Madfish Inc. stock?
2. What would happen to the weights if the number of shares for one company increased?
3. Can you explain why the portfolio weights must add up to 100%?
4. How would you adjust your portfolio if you wanted equal weights for both stocks?
5. What role does diversification play in constructing a portfolio?

**Tip:** Always double-check your calculations, especially when handling large numbers, as small mistakes can lead to significant differences in results.

You buy 115115 shares of Tidepool Co. for $45 each and 185185 shares of Madfish, Inc. for $15 each. What are the weights in your portfolio? The weight of Tidepool Co. stock in the portfolio is enter your response here%. (Round to two decimal places.)

Learn how to calculate the portfolio weights of Tidepool Co. and Madfish, Inc. stocks. This detailed example walks through determining investment values and calculating stock weights based on percentage. Suitable for high school students in Grades 9-12.

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