You have $15,040 to invest. You want to purchase shares of Company A at $42.50, Company B at $51.50, and Company F at $9.75. How many shares of each company should you purchase so that your portfolio consists of 20 percent Company A, 40 percent Company B, and 40 percent Company F? Report only whole stock shares.
A) Company A = 20 shares, Company B = 40 shares, Company F = 40 shares
B) Company A = 85 shares, Company B = 21 shares, Company F = 39 shares
C) Company A = 70 shares, Company B = 116 shares, Company F = 617 shares
D) Company A = 353 shares, Company B = 291 shares, Company F = 1538 shares

Question

Quizplus · Accepted Answer

First, calculate the total investment for each company based on the percentages: Company A = 20% of $15,040 = $3,008; Company B = 40% of $15,040 = $6,016; Company F = 40% of $15,040 = $6,016. Then, divide each amount by the share price of the respective company: Company A shares = $3,008 / $42.50 ≈ 70.78 ≈ 70 shares; Company B shares = $6,016 / $51.50 ≈ 116.82 ≈ 116 shares; Company F shares = $6,016 / $9.75 ≈ 616.82 ≈ 617 shares.

You Have $15,040 to Invest