Investing Procter and Gamble Co. stock sells for $143 a share and has a 3-year
average annual return of $28 a share. The beta value is .43 . Apple Inc. sells for
$150 a share and has a 3 -year average annual return of $60 a share. The beta value
is 1.21 Tori wants to spend no more than $12,000 investing in these two stocks, but
she wants to earn at least $4000 in annual revenue. Tori also wants to minimize
the risk. Determine the number of shares of each stock that Tori should buy.
a.
no shares of Procter & Gamble and 80 shares of Apple.
b.
no shares of Procter & Gamble and 67 shares of Apple.
c.
80 shares of Procter & Gamble and no shares of Apple.
d.
27 shares of Procter & Gamble and 54 shares of Apple.
e.
67 shares of Procter & Gamble and no shares of Apple.
21. Investing Procter and Gamble Co. stock sells for $143 a share and has a 3-year
average annual return of $28 a share. The beta value is .43. Apple Inc. sells for
$150 a share and has a 3-year average annual return of $60 a share. The beta value
is 1.21 Tori wants to spend no more than $12,000 investing in these two stocks, but
she wants to earn at least $4000 in annual revenue. Tori also wants to minimize
the risk. Determine the number of shares of each stock that Tori should buy.