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 = 617 shares
D)Company A = 353 shares, Company B = 291 shares, Company F = 1538 shares

Question

Quizplus · Accepted Answer

To allocate 20% to Company A, 40% to Company B, and 40% to Company F, calculate the dollar amount for each: $3,008 for A, $6,016 for B, and $6,016 for F. Divide each by the stock price and round to whole shares: A = 71 shares, B = 117 shares, F = 617 shares.

You Have $15,040 to Invest