Got Homework?
Connect with other students for help. It's a free community.
Here's the question you clicked on:
 0 viewing
aama100
Group Title
A portfolio contains three stocks (Stock A, Stock B, and Stock C). The overall value of the portfolio increased 20 percent during 2005the value of Stock A increased by 15 percent, the value of Stock B increased by 22 percent, and the value of Stock C increased by 30 percent. If 40 percent of the total funds in the portfolio were in Stock A at the beginning of 2005, what was the percent of funds (weight) invested in stock B ?
 3 years ago
 3 years ago
aama100 Group Title
A portfolio contains three stocks (Stock A, Stock B, and Stock C). The overall value of the portfolio increased 20 percent during 2005the value of Stock A increased by 15 percent, the value of Stock B increased by 22 percent, and the value of Stock C increased by 30 percent. If 40 percent of the total funds in the portfolio were in Stock A at the beginning of 2005, what was the percent of funds (weight) invested in stock B ?
 3 years ago
 3 years ago

This Question is Closed

BruLee Group TitleBest ResponseYou've already chosen the best response.0
This is pure math, I won't solve the problem for you but I'll give you a hint: you have to solve 2 equations with 2 unknowns and your goal is to find the weight of each stock (you already have the weight of stock A).
 3 years ago

aama100 Group TitleBest ResponseYou've already chosen the best response.0
What are the two equations ?
 3 years ago

ljoos01 Group TitleBest ResponseYou've already chosen the best response.0
Stock B=45%
 3 years ago

edisonguo Group TitleBest ResponseYou've already chosen the best response.0
let w1, w2 and w3 be the weights for stock A, B and C obviously w1 + w2 + w3 = 1 In addition, w1 = 0.4, which is given in the question. In other words, w2 + w3 = 1  w1 = 0.6 Further, w1 * 0.15 + w2 * 0.22 + w3 * 0.3 = 0.2 => 0.4 * 0.15 + w2 * 0.22 + w3 * 0.3 = 0.2 So now you have two equations with two unknowns as follows: w2 + w3 = 0.6 0.4 * 0.15 + w2 * 0.22 + w3 * 0.3 = 0.2 I assume you'll have no problem to solve that :)
 3 years ago
See more questions >>>
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.