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 Payments Journal

A business ledger that documents every payment or cash disbursement made by a company.

General Journal

An accounting journal where all types of transactions are initially recorded, before being posted to specific accounts in the ledger.

Accounting System

A systematic process used by entities to track financial transactions and summarize financial data.

Cost Effectiveness

An assessment that compares the relative costs and outcomes (effects) of different courses of action.