Use the information for the question(s)below.
Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT)at $50 per share,200 shares of Lowes Companies,Inc.(LOW)at $30 per share,and 100 shares of Ball Corporation (BLL)at $40 per share.
-The weight on Ball Corporation in your portfolio is:
A)50%.
B)40%.
C)20%.
D)30%.

Question

Quizplus · Accepted Answer

To calculate the weight of a stock in a portfolio, we need to find the total value of that stock and divide it by the total value of the entire portfolio. 
Total value of Ball Corporation = 100 shares x $40 per share = $4,000 
Total value of portfolio = (200 shares x $50 per share) + (200 shares x $30 per share) + (100 shares x $40 per share) = $10,000 + $6,000 + $4,000 = $20,000 
Weight of Ball Corporation in the portfolio = $4,000 ÷ $20,000 = 0.2 or 20% 
Therefore, the answer is C.

There is no best choice as investment decisions depend on individual goals, risk tolerance, and other factors.

Use the Information for the Question(s)below