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Suppose you invest $20 000 by purchasing 400 shares of BHP Billiton (BHP)at $13 per share, 500 shares of ANZ Bank (ANZ)at $20 per share, and 200 shares of Flight Centre (FLT)at $24 per share.
-The weight of FLT in your portfolio is:

Question

Quizplus · Accepted Answer

We need to calculate the total value of the portfolio first.
Total portfolio value = (400*$13) + (500*$20) + (200*$24) = $25,400
The weight of FLT = (value of FLT investment/total portfolio value) * 100%
= (200*$24/$25,400) * 100%
= 48/101 * 100%
= 47.5%
Rounding off to the nearest whole number, the weight of FLT in the portfolio is 24%. Therefore, the best choice is B.

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