Question

You have a portfolio of two stocks that has a total value of $27,000. The portfolio is 39 percent invested in Stock J. If you own 180 shares of Stock K, what is Stock K's share price?

Answer 1

$91.50 per share

Step-by-step explanation:

The computation of the stock k share price is shown below:

Total value of portfolio = $27,000

The 39% invested in Stock J and the remaining 61% is invested in stock K

So, the value of K is

= $27,000 × 61%

= $16,470

And, the Stock K shares owned is 180

So, the share price of stock K is

= $16,470 ÷ 180 shares

= $91.50 per share

We simply divide the portfolio value of K by the number of shares owned by Stock k so that the share price of stock K could come