Question

An investment portfolio is shown below.

Investment Amount Invested ROR
Stock A $1,800 1.8%
Stock B $4,600 3.4%
Stock C $580 12.9%
Stock D $1,122 −9.5%


Using technology, calculate the weighted dollar amount of Stock C.
$32.40
$74.82
$106.59
$156.40

Answer 1

To calculate the weighted dollar amount of Stock C, multiply the amount invested ($580) by the rate of return (12.9%) to get $74.82.

Step-by-step explanation:

The student is asked to calculate the weighted dollar amount of Stock C in an investment portfolio. To find this, you multiply the amount invested in Stock C by its rate of return (ROR). In this case, Stock C has an amount of $580 invested at a ROR of 12.9%.

You calculate the weighted dollar amount as follows:

• Convert the percentage to a decimal: 12.9% = 0.129
• Multiply the amount invested by the decimal ROR: $580 × 0.129
• Calculate the result: $74.82

Therefore, the weighted dollar amount of Stock C is $74.82.