Portfolio Weights 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

To allocate the investment according to the desired portfolio weights, calculate the dollar amount for each company: $13,515 for Company A (30% of $45,050), $22,525 for Company B (50% of $45,050), and $9,010 for Company F (20% of $45,050). Divide each amount by the respective share price and round to the nearest whole number: 1,323 shares for Company A, 1,490 shares for Company B, and 993 shares for Company F.

Portfolio Weights You Have $45,050 to Invest