Question

In: Finance

Suppose you created a portfolio by purchasing 300 shares of Abbott Labs (ABT) at $55 per share, 250 shares of Lowes (LOW) at $35 per share, and 150 shares of Ball Corporation (BLL) at $45 per share. What is the weight of Lowes (LOW) in your portfolio?

Suppose you created a portfolio by purchasing 300 shares of Abbott Labs (ABT) at $55 per share, 250 shares of Lowes (LOW) at $35 per share, and 150 shares of Ball Corporation (BLL) at $45 per share. What is the weight of Lowes (LOW) in your portfolio?

a. 51.56%

b. 27.34%

c. 21.09%

d. 48.89%

e. 39.11%

Solutions

Expert Solution

The option (b) is right option.

 

Explanation:

Nos (A) Value per share (B) Total Market value (a*b)
Abott 300 55 16500
Lowes 250 35 8750
Ball 150 45 6750
32000

 

Weight of Lowes = $ 8750/ $32,000

                              = 27.34%.

 

The option (b) is right option.

Hence, the answer is option b.

Hence, the answer is option b.

Nabeel answered 1 year ago
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