You have $45,050 to invest. You want to purchase shares of Company Air at $10.25, Company B at $15.10, and Company F at $9.05. How many shares of each company should you purchase so that your portfolio consists of 30 percent Company A, 50 percent Company B, and 20 percent Company F? Report only whole stock shares.
A)Company A = 30 shares, Company B = 50 shares, Company F = 20 shares
B)Company A = 44 shares, Company B = 30 shares, Company F = 50 shares
C)Company A = 308 shares, Company B = 755 shares, Company F = 181 shares
D)Company A = 1,323 shares, Company B = 1,490 shares, Company F = 993 shares

Question

Quizplus · Accepted Answer

First, we need to find the total amount of money invested in each company:

- Company A: 30% of $45,050 = $13,515
- Company B: 50% of $45,050 = $22,525
- Company F: 20% of $45,050 = $9,010

Next, we need to find how many shares of each company we can buy with the allocated amount:

- Company A: $13,515 ÷ $10.25 = 1,318.05 shares (rounded down to 1,323 shares)
- Company B: $22,525 ÷ $15.10 = 1,490.07 shares (rounded down to 1,490 shares)
- Company F: $9,010 ÷ $9.05 = 995.58 shares (rounded down to 993 shares)

Therefore, the answer is D.

You Have $45,050 to Invest