3. (a) Suppose that stock A shares sell at $75 and stock B shares at $115. A...

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(a) Suppose that stock A shares sell at $75 and stock B shares at $115.

A portfolio has 300 shares of stock A and 100 of stock B. What are the weights w and 1 − w of stocks A and B in this portfolio?

(b) More generally, if a portfolio has N stocks, if the price per share of the jth stock is Pj , and if the portfolio has nj shares of stock j, then find a formula for wj as a function of n1,...,nN and P1,...,PN .

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