Ask Question
2 June, 17:47

You have $10,000 to invest. You want to purchase shares of Alaska Air at $42.56, Best Buy at $51.42, and Ford Motor at $8.56. How many shares of each company should you purchase so that your portfolio consists of 20 percent Alaska Air, 30 percent Best Buy, and 50 percent Ford Motor?

+4
Answers (1)
  1. 2 June, 18:15
    0
    Alaska = 46.99 units

    Best buy = 58.34 units

    Ford Motor = 584.11 units

    Explanation:

    To determine the unit of each class of stock to purchase, we wll multiply each of the percentages by the total fund to be arrive the proportion of fund to be invested in each class.

    Further more, we will divide the allocated amount by the share price per unit

    Shares to be purchased to have the given proportion would be '

    Alaska (20%) = (20% * 10,000) / 42.56 = 46.99 units

    Best buy (30%) = (30% * 10,000) / 51.42 = 58.34 units

    Ford Motor (50%) = (50% * 10,000) / 8.56 = 584.11 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You have $10,000 to invest. You want to purchase shares of Alaska Air at $42.56, Best Buy at $51.42, and Ford Motor at $8.56. How many ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers