Exercise

The weights of an equally weighted portfolio

One of the most commonly used portfolios in investing is the equally weighted portfolio. This means that you choose to invest an equal amount of capital in each asset.

Suppose a portfolio is equally invested in \(N\) assets, where N <- 100. Use the R console to determine which of the following commands defines the weight vector for an equally weighted portfolio.

Instructions

50 XP

Possible Answers

weights <- 1/N
weights <- rep(1/N,N)
weights <- rep(N, 1)
weights <- rep(1/N, 1)

Take Hint (-15 XP)