19
QuizMultiple Choice

Building a Portfolio — Quiz

Question 19 • Financial Math

Milan's portfolio includes 100 shares of Stock Gamma and 200 shares of Stock Delta. Stock Gamma was bought at $⁢45 per share, and Stock Delta at $⁢30 per share. Now, Stock Gamma is worth $⁢50 per share, and Stock Delta is valued at $⁢28 per share. What are the initial and current values of Milan's portfolio?

Answer
A
initial: 10 dollars comma 000; current: 10 dollars comma 600
B
initial: 10 dollars comma 500; current: 10 dollars comma 600
C
initial: 9 dollars comma 500; current: 10 dollars comma 400
D
initial: 9 dollars comma 000; current: 9 dollars comma 800

Explanation

Initially, the 100 shares of Gamma cost 100 × $45 = $4,500, and the 200 shares of Delta cost 200 × $30 = $6,000. Together, the initial value was $10,500. At current prices, Gamma is worth 100 × $50 = $5,000 and Delta is worth 200 × $28 = $5,600, for a current value of $10,600. The correct choice is A: initial $10,500; current $10,600.

AI-written and checked against the verified answer.

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