Your Friend's Portfolio Manager Has Suggested Two High-Yielding Stocks: Consolidated

question 69

Short Answer

Your friend's portfolio manager has suggested two high-yielding stocks: Consolidated Edison (ED) and Royal Bank of Scotland (RBS-K). ED shares cost $40, yield 5.5% in dividends, and have a risk index of 1.0 per share. RBS-K shares cost $25, yield 7.5% in dividends, and have a risk index of 1.5 per share. You have up to $22,000 to invest and would like to earn at least $1,210 in dividends. How many shares (to the nearest whole number) of each stock should you purchase in order to meet your requirements and minimize the total risk index for your portfolio
If no optimal solution exists enter no solution in each box.
?
Number of shares of ED = __________
?
Number of shares of RBS-K = __________

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Definitions:

Trust Level

The degree to which one party is willing to rely on the actions, decisions, and integrity of another party.

Equality Matching

A principle or strategy in social relations where participants ensure that benefits and costs are distributed equally among members.

Equality Matching

A relationship model based on balance and fairness, where contributions and benefits are expected to be equal.

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.