Quantcast

A community for students. Sign up today!

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

aama100

  • 3 years ago

A portfolio contains three stocks (Stock A, Stock B, and Stock C). The overall value of the portfolio increased 20 percent during 2005--the 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 ?

  • This Question is Closed
  1. BruLee
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 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).

  2. aama100
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    What are the two equations ?

  3. ljoos01
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Stock B=45%

  4. edisonguo
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 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 :)

  5. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Ask a Question
Find more explanations on OpenStudy

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
  • 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.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.