Portfolio Weight Calculator

Formula

The formula to calculate the portfolio weight is:

\[ PW = \frac{AV}{P} \times 100 \]

Where:

$ PW $ is the Portfolio Weight (%)
$ AV $ is the Value of the Given Asset ($)
$ P $ is the Value of the Entire Portfolio ($)

What is Portfolio Weight?

Portfolio weight measures the proportion of a specific asset's value relative to the total value of the portfolio. It helps in understanding the distribution and risk associated with each asset within the portfolio.

Example Calculation

Let's assume the following values:

Value of the Given Asset (AV): $10,000
Value of the Entire Portfolio (P): $50,000

Using the formula to calculate the portfolio weight:

\[ PW = \frac{10,000}{50,000} \times 100 = 20 \% \]

The portfolio weight is 20%.