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:

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Answer:

Investment

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

50%

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%

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