Sorry in advance if this question is either too basic or really dumb, but I've been researching this and am a bit confused. I'm trying to help my niece with a question she has and the gist of it is she has the following portfolio:
Name Shares Price a 50 50 b 85 20 c 10 -30 Total Value = $3900
I might be missing something obvious but I tried to take each value and divide it from the total, which gives me:
a 50 * 50 = 0.641% b 85 * 20 = 0.436% c 10 * -30 = -0.077%
Which equals 100% but is not correct because of the negative weight(I also tried to make the negative number positive but it didn't seem right). I understand the negative value is causing the weight to be negative but somehow I need to account for the 10 shares(I also want to account for it based on the value and not number of shares). How can I use this information and create a weight that doesn't have a negative value?
I don't really need the answer, just the logic(or what kind of math I need to learn to solve this).