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Consider a portfolio that includes the following two companies: Company 1 Company 2 Day Price Number of Shares Price Number of Shares 1 $5.00 750

Consider a portfolio that includes the following two companies:

Company 1

Company 2

Day

Price

Number of Shares

Price

Number of Shares

1

$5.00

750

$11.00

1,450

2

$6.98

750

$12.82

1,450

On Day 1 the portfolio has weights which are equal to the value of each company's shares relative to the total value of both companies. What is the portfolio weight for Company 1?

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