What are the proportions of Stocks A,B,and C,respectively in Bo's complete portfolio?
A)40%, 25%, 35%
B)8%, 5%, 7%
C)32%, 20%, 28%
D)16%, 10%, 14%
E)20%,12.5%,17.5%

Question

Quizplus · Accepted Answer

This can be solved using the weighted average formula. Let x be the proportion of Stock A, then 0.5x is the proportion of Stock B and 0.7x is the proportion of Stock C. The sum of these proportions should be 1 (the complete portfolio). 
Therefore, x + 0.5x + 0.7x = 1 
Simplifying, we get 1.2x = 1 
Solving for x, we get x = 5/6. 
So the proportions of the stocks are:
Stock A: 5/6 x 0.32 = 0.2667 or approximately 26.67%
Stock B: 5/6 x 0.20 = 0.1667 or approximately 16.67%
Stock C: 5/6 x 0.28 = 0.2333 or approximately 23.33%
Adding these up, we get a total of approximately 66.67%, which is closest to choice C (32%, 20%, 28%).

What Are the Proportions of Stocks A,B,and C,respectively in Bo's