Portfolio Weights 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 20% of $15,040 to Company A, 40% to Company B, and 40% to Company F, you calculate the dollar amount for each and divide by the share price. This results in approximately 71 shares of Company A, 117 shares of Company B, and 615 shares of Company F.

Portfolio Weights You Have $15,040 to Invest