Question

Wendell invests $10,000 in a stock portfolio made up of Petroleum Special at $30 per share, Newshoe at $12 per share, and Beans and Sprouts at $2.50 per share. He places 60 percent of the money in P.S. (Petroleum Special), 30 percent in N (Newshoe), and 10 percent in B & S (beans and Sprouts). With market values changing (P.S. down $3.12, N up 80 percent, and B & S up $0.20), what is his portfolio worth 6 months later?


The word problem is included in the book: Basic Biomechanics, 6th edition
by Susan J. Hall;
ISBN#978-0-07-337644-8

The course name: Biomechanics

Answer 1

just work with the facts presented:

60% = 6000 @ $30 = 200 shares
30% = 3000 @ $12 = 250 shares
10% = 1000 @ $2.50 = 400 shares

now figure the changes in value:

200(-3.12) = -624.00
250(.80*12) = +2400
400(0.20) = +80.00

. . .