Investments Marjory Duffin’s portfolio manager has suggested two high-yielding stocks: European Emerald Emporium (EEE) and Royal Ruby Retailers (RRR).46 EEE shares cost $50, yield 4.5% in dividends, and have a risk index of 2.0 per share. RRR shares cost $55, yield 5% in dividends, and have a risk index of 3.0 per share. Marjory has up to $12,100 to invest and would like to earn at least $550 in dividends. How many shares of each stock should she purchase to meet her requirements and minimize the total risk index for her portfolio? What is the minimum total risk index?
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Chapter 5 Solutions
Bundle: Finite Mathematics, Loose-leaf Version, 7th + WebAssign Printed Access Card for Waner/Costenoble's Finite Mathematics, 7th Edition, Single-Term