You have $10,000 to invest. You want to purchase shares of Alaska Air at $50.00, Best Buy at $50.00, and Ford Motor at $10.00. How many shares of each company should you purchase so that your portfolio consists of 25 percent Alaska Air, 40 percent Best Buy, and 35 percent Ford Motor? Report only whole stock shares.
A) 50 shares of Alaska Air, 80 shares of Best Buy, and 300 shares of Ford Motor
B) 50 shares of Alaska Air, 80 shares of Best Buy, and 350 shares of Ford Motor
C) 40 shares of Alaska Air, 90 shares of Best Buy, and 300 shares of Ford Motor
D) 75 shares of Alaska Air, 40 shares of Best Buy, and 350 shares of Ford Motor

Question

Quizplus · Accepted Answer

To allocate $10,000 with 25% in Alaska Air, 40% in Best Buy, and 35% in Ford Motor: $2,500 in Alaska Air ($50/share = 50 shares), $4,000 in Best Buy ($50/share = 80 shares), and $3,500 in Ford Motor ($10/share = 350 shares).

You Have $10,000 to Invest