Investments: Financial Stocks During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share, was expected to yield 4% per year in dividends, and had a risk index of 3.0 per share, while CNA Financial Corp. (CNA) stock cost $40 per share, was expected to yield 2.5% per year in dividends, and had a risk index of 2.0 per share. You have up to $25,000 to invest in these stocks, and would like to earn at least $796 in dividends over the course of a year. (Assume the dividends to be unchanged for the year.) How many shares (to the nearest tenth of a unit) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio? Toronto Dominion Bank shares CNA Financial Corp. shares What is the minimum total risk index? (Round your answer to two decimal places.)

Investments: Financial Stocks During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share, was expected to yield 4% per year in dividends, and had a risk index of 3.0 per share, while CNA Financial Corp. (CNA) stock cost $40 per share, was expected to yield 2.5% per year in dividends, and had a risk index of 2.0 per share. You have up to $25,000 to invest in these stocks, and would like to earn at least $796 in dividends over the course of a year. (Assume the dividends to be unchanged for the year.) How many shares (to the nearest tenth of a unit) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio? Toronto Dominion Bank shares CNA Financial Corp. shares What is the minimum total risk index? (Round your answer to two decimal places.)

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter11: Investment Planning

Section: Chapter Questions

Problem 7FPE: Using the Value Line Investment Survey report in Exhibit 11.5, find the following information for...

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During the first quarter of 2015, Toronto Dominion Bank (TD) stock cost $45 per share and was expected to yield 4% per year in dividends, while CNA Financial Corp. (CNA) stock cost $40 per share and was expected to yield 2.5% per year in dividends. If you invested a total of $26,250 in these stocks and expected to earn $798 in dividends in a year, how many shares of each stock did you purchase? TD stock shares CNA stock shares
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