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Suppose that your portfolio currently consists of two stocks: A and B. You own 1,000 shares of Stock A that is priced at $26 per
Suppose that your portfolio currently consists of two stocks: A and B. You own 1,000 shares of Stock A that is priced at $26 per share and 800 shares of Stock B that is priced at $18 per share. If the price of Stock A increases from $26 to $29, how many shares of Stock B would you need to purchase (or sell) to re-balance your portfolio such that the weights of both stocks remain unchanged from the original prices?
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