Question

Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share. The weight on Abbott Labs in your portfolio is:

Answer 1

Investment

The weight on Abbott Labs' investment in the portfolio is:

50%

Step-by-step explanation:

Investments made by the investor are:

200 shares of Abbott Labs (ABT) at $50 per share = $10,000

200 shares of Lowes (LOW) at $30 per share = $6,000

100 shares of Ball Corporation (BLL) at $40 per share = $4,000

Total investments (Portfolio) = $20,000

Investments Weights of investments % Weight

Abbott Labs $10,000/$20,000 * 100 = 50%

Lowes (LOW) $6,000/$20,000 * 100 = 30%

Ball Corporation (BLL) $4,000/$20,000 * 100 = 20%