You have $15,040 to invest. You want to purchase shares of Company Air 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 = 21shares, Company F = 39 shares
C)Company A = 71 shares, Company B = 117 shares, Company F = 615 shares
D)Company A = 353 shares, Company B = 291 shares, Company F = 1538 shares

Question

Quizplus · Accepted Answer

To allocate the investment according to the desired percentages: 20% of $15,040 is $3,008 for Company A, 40% is $6,016 for Company B, and 40% is $6,016 for Company F. Dividing these amounts by the respective share prices gives approximately 71 shares for Company A, 117 shares for Company B, and 615 shares for Company F.

You Have $15,040 to Invest