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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 of Abbott Labs in your portfolio is:

Question

Quizplus · Accepted Answer

To calculate the weight of Abbott Labs in the portfolio, we need to first calculate the total value of the portfolio invested in each company. 
Investment in Abbott Labs = 200 x $50 = $10,000 
Investment in Lowes = 200 x $30 = $6,000 
Investment in Ball Corporation = 100 x $40 = $4,000

Total investment in the portfolio = $10,000 + $6,000 + $4,000 = $20,000

Therefore, the weight of Abbott Labs in the portfolio is the percentage of the total investment that is in Abbott Labs. 
Weight of Abbott Labs = ($10,000 ÷ $20,000) x 100% = 50%.

As for the best choice(s), it's subjective and dependent on the investment strategy, risk tolerance, and market conditions. It's always recommended to consult with a financial advisor for personalized guidance.

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