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The problem is with the changing volume of assets which changes the weights. I want to use the formula for portfolio risk but cannot figure out the weights. Should taking average weight of an asset work?

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  • $\begingroup$ Can you remind us what 'formula for portfolio risk' you have in mind. Portfolio variance, value at risk, something else? $\endgroup$
    – nbbo2
    Jul 30, 2022 at 7:15
  • $\begingroup$ Portfolio variance $\endgroup$ Jul 30, 2022 at 7:56
  • $\begingroup$ The most common approach for a changing portfolio is to compute the portfolio returns (from the stock prices and positions held), then from the times series of portfolio returns compute the variance. $\endgroup$
    – nbbo2
    Jul 30, 2022 at 10:16

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