Question

Asked Feb 19, 2020

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Suppose you invest $15,000 by purchasing 200 shares of Abbott Labs (ABT) at $40 per share, 200 shares of Lowes (LOW) at $20 per share, and 100 shares of Ball Corporation (BLL) at $30 per share. The weight of Ball Corporation in your portfolio is?

Step 1

The question is based on the concept to calculate weight of an asset in the total portfolio, which can be calculate as,

W_{b} = weight of Ball corporation

Step 2

Total value of portfolio = $ 15000.

Value of Ball corporation = 100*$30 =$ 3,000

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