Evert Company makes two types of circuit boards. One is a high-caliber board designed to accomplish the most demanding tasks; th
1 answer:
You might be interested in
Answer: Treasury Bills - 35%
Stock A - 17.55%
Stock B - 23.4%
Stock C - 24.05%
Explanation:
Hello.
The question was a tad incomplete so I attached the relevant portion from a similar question as a guide.
The client already has 35% invested in T- bills so that would be the T- bill proportion.
Now we need the proportions of the other 3 stocks.
Stock A will be,
= 0.65 (proportion of total portfolio in the fund) * 0.27 (proportion of stock in fund)
= 0.1755
= 17.55% of total portfolio
Stock B will be,
= 0.65 (proportion of total portfolio in the fund) * 0.36 (proportion of stock in fund)
= 0.234
= 23.4% of total portfolio
Stock C will be,
= 0.65 (proportion of total portfolio in the fund) * 0.37 (proportion of stock in fund)
= 0.2405
= 24.05% of the total portfolio.
To check the figures we can add them up.
That would be
= 0.35 + 0.2405 + 0.234 + 0.1755
= 1
So those are the correct proportions of your client’s overall portfolio, including the position in T-bills.
