A Share Market Comprises 5 000 Shares of Company a and 2

question 81

Multiple Choice

A share market comprises 5 000 shares of company A and 2 000 shares of company B. Assume the share prices for companies A and B are $20 and $35, respectively. If you have $15 000 to invest and you want to hold the market portfolio, how much of your money will you invest in company A?

• A)$8 823.53
• B)$6 176.47
• C)$5 000
• D)$10 000

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Definitions:

Cash In

The process of liquidating assets or securities for the purpose of extracting cash, often related to investments or savings.

Accounts

Records or statements that track financial transactions and positions of an individual or organization.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, reflecting the time value of money.

Interest Rate

The cost of borrowing money, often expressed as a percentage of the borrowed amount.