Question

In: Finance

You have a portfolio of two stocks that has a total value of $32,000. The portfolio is 44 percent

You have a portfolio of two stocks that has a total value of $32,000. The portfolio is 44 percent invested in Stock J. If you own 205 shares of Stock K, what is Stock K's share price?

Expert Solution

- Total Value of the Portfolio= $32,000

- % of Investment in Stock J = 44%

% of Investment in Stock K = 1− % of Investment in Stock J

= 1 − 0.44

= 0.56

First, Calculating the Total Investment in Stock K:-

Total Investment in Stock K = Total Value of the Portfolio∗% of Investment in Stock K

= $32,000×0.56

= $17,920.00

- Number of Shares owned in Stock K = 205

Now, Calculating the Stock's Price per share:-

Stock′s Price per share = Total Investment in Stock K/Number of Shares owned in Stock K

= $17,920205

= $87.41

So, the Stock's Price per share is $87.41.

Junaid answered 2 years ago

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