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In: Finance

Al and Peggy are splitting up, and they need to divide an HDTV, a new couch...

Al and Peggy are splitting up, and they need to divide an HDTV, a new couch and a stock portfolio. They decide to use the Adjusted Winner procedure, and each of them assigns a total of 100 points, to be split among the three items.

Al assigns 84 points to the TV, 9 points to the couch, and the rest of his points to the stock portfolio. Peggy assigns 9 points to the TV, 52 points to the couch, and the rest of her points to the savings account.

With those point assignments, Al gets the TV, Peggy will take the couch, and they will split the stock portfolio. What percentage of the stock portfolio will Al get?

Round your answer to the nearest whole percent, but do not include a % symbol with your response.

Solutions

Expert Solution

These points are added with respect to stock portfolio's allocation. we added x points of 39 which peggy had allocated to stock portfolio and added (1-x) points of 9 which Al had allocated to stock portfolio.

PEGGY = 52 ( these points he already had of couch) + 39 x ( x points of 39, which he had allocated to stock portfolio)

AL = 84 ( these points he already had of TV) + 9 (1-x) ( 1- x points of 9, which he had allocated to stock portfolio)

jeff jeffy answered 2 years ago
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