To keep things simple, we will explain the formula assuming a two-stock portfolio. The data points you need are: The portfolio weight of Stock 1 and Stock 2. Calculate this by dividing the value ...

As the portfolio value increases, creating a larger cushion ... the amount of money invested in stocks can be determined with the following formula: For example, suppose you have an investment ...

To calculate the NLV of a portfolio, use this formula: Net Liquidation Value = Market Value of Assets – Liabilities This is how it works: For example, if a portfolio contains stocks worth $ ...