Question

A pension fund owns 11,000 shares in a stock mutual fund and a bond mutual fund. Currently the stock fund sells for $12 per share and the bond sells fund sells for $15 per share. How many shares of each does the pension fund own if the value of the securities is $150,000?

Fund owns:
Stock fund shares
Bond fund shares

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Answer 1

9514 1404 393

Answer:

• 5000 shares of stock fund
• 6000 shares of bond fund

Explanation:

Let b represent the number of shares of the bond fund owned. Then the value of the pension fund is ...

15b +12(11000-b) = 150000

3b = 18000 . . . . . . . . . . subtract 130,000

b = 6000 . . . . . . . . . shares of bond fund

11000 -b = 5000 . . . shares of stock fund