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You have $14,000 to invest. You want to purchase shares of Alaska Air at $42.96, Best...

You have $14,000 to invest. You want to purchase shares of Alaska Air at $42.96, Best Buy at $51.82, and Ford Motor at $8.76. How many shares of each company should you purchase so that your portfolio consists of 20 percent Alaska Air, 40 percent Best Buy, and 40 percent Ford Motor? (Do not round intermediate calculations and round your final answers to the nearest whole number.)

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Answer #1

Total portfolio size = $14,000

AlaskaAir = 20% of portfolio = 20% * $14000 = $2800

Number of shares for Alaska Air = $2800/$42.96 = 65 shares

Best Buy = 40% of portfolio = 40% * $14000 = $5600

Number of shares for Best Buy = $5600/$51.82 = 108 shares

Ford Motor = 40% of portfolio = 40% * $14000 = $5600

Number of shares for Alaska Air = $5600/$8.76 = 639 shares

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