Question: Static Electrical stock cost $ 4 5 . 5 0 per share, was expected to yield 4 . 7 5 % per year in dividends,
Static Electrical stock cost $ per share, was expected to yield
per year in dividends, and had a risk index of while Daylight Electrical
stock also cost $ per share, was expected to yield per year in
dividends, and had a risk index of An investor wishes to invest up to
$ in these two stocks and would like to earn at least $ in
dividends over the course of a year. How many shares of each stock
rounded to the nearest possible whole stock should they purchase to
meet their requirements and minimize the total risk for their portfolio?
NOTE: The total risk for a stock is: risk index x shares of stock; so for
shares of Static Electrical Stock, the total risk is
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
