Your friend's portfolio manager has suggested two high-yielding stocks: Consolidated Edison (ED) and Royal Bank of Scotland (RBS-K). ED shares cost $40, yield 5.5% in dividends, and have a risk index of 1.0 per share. RBS-K shares cost $25, yield 7.5% in dividends, and have a risk index of 1.5 per share. You have up to $24,000 to invest and would like to earn at least $1,320 in dividends. How many shares (to the nearest whole number) of each stock should you purchase in order to meet your requirements and minimize the total risk index for your portfolio?

Your friend's portfolio manager has suggested two high-yielding stocks: Consolidated Edison (ED) and Royal Bank of Scotland (RBS-K). ED shares cost $40, yield 5.5% in dividends, and have a risk index of 1.0 per share. RBS-K shares cost $25, yield 7.5% in dividends, and have a risk index of 1.5 per share. You have up to $24,000 to invest and would like to earn at least $1,320 in dividends. How many shares (to the nearest whole number) of each stock should you purchase in order to meet your requirements and minimize the total risk index for your portfolio?

Name: Your friend's portfolio manager has suggested two high-yielding stocks
Uploaded: 2024-03-20T07:07:26.000Z
Channel: Bartleby
Description: Your friend's portfolio manager has suggested two high-yielding stocks: Consolidated Edison (ED) and Royal Bank of Scotland (RBS-K). ED shares cost $40, yield 5.5% in dividends, and have a risk index of 1.0 per share. RBS-K shares cost $25, yield 7.5

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

See similar textbooks

Similar questions

Given that sales volumes are forecast to stay steady at 2,000,000 units, the best option is _________________. 1. Manual Production Line 2. Semi-automatic Production Line 3. Fully Automatic Production Line
First Securities, Inc., an investment firm, has $380,000 on account. The chief investment officer would like to reinvest the $380,000 in a portfolio that would maximize return on investment while at the same time maintaining a relatively conservative mix of stocks and bonds. The following table shows the investment opportunities and rates of return. Investment Opportunity Rate of Return Municipal Bonds (X1) 0.095 High Tech Stock (X2) 0.146 Blue Chip Stock (X3) 0.075 Federal Bonds (X4) 0.070 a) The Board of Directors has mandated that at least 60 percent of the investment consist of a combination of municipal and federal bonds, at least 25 percent Blue Chip Stock, no more than 30 percent High Tech and Blue Chip Stock, and no more than 15 percent High Tech Stock. Based on above problem, how many constraints are in this problem? A) 3 B) 4 C) 5 D) 2 b) Based on part a, which of the…
A farmer estimates that if he harvests his soybean crop now, he will obtain 1,000 bushels, which he can sell at $3.00 per bushel. However, he estimates that this crop will increase by an additional 1,200 bushels of soybeans for each week he delays harvesting, but the price will drop at a rate of 50 cents per bushel per week; in addition, it is likely that he will experience spoilage of approximately 200 bushels per week for each week he delays harvesting. When should he harvest his crop to obtain the largest net cash return, and how much will be received for his crop at that time?
In August 2011, Bank of Hawaii (BOH) stock cost $45 per share, yielded 4% per year in dividends, and had a risk index of 3.0 per share, while JPMorgan Chase (JPM) stock cost $40 per share, yielded 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 $760 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?
Federated Electronics, Ltd., manufactures display screensand monitors for computers and televisions, which it sellsto companies around the world. It wants to construct a new warehouse and distribution center in Asia to serve emerg-ing markets there. It has identified potential sites in the port cities of Shanghai, Singapore, Pusan, Kaohsiung, and HongKong and has estimated the possible revenues for each(minus construction costs which are higher in some citieslike Hong Kong). At each site the projected revenues are primarily based on these factors, (1) the economic condi-tions at the port including the projected traffic, infrastruc-ture, labor rates and availability; and expansion and modernization; and (2) the future government situationwhich includes the political stability, fees, tariffs, duties,and trade regulations. Following is a payoff table thatshows the projected revenues (in $ billions) for six years given the four possible combinations for positive and nega-tive port and…