Purchase Solution

Selling Stocks and Retaining Portfolio Ratio

Not what you're looking for?

Ask Custom Question

You own 1000 shares of Robotica Galactica (RG) at $39.00 per share. You also own 500 shares of Algebraic Flavors and Fragrance International (AFFI) at $100 per share. You would like to liquidate a part of your holdings to generate about $40,000 in cash for an emergency use. How would you sell your stock so that in your portfolio the remaining stocks maintain roughly the same ratio?

Note: Clever solutions are just as welcome as mathematical formulations!

Purchase this Solution
Solution Summary

Selling stocks and retaining portfolio ratio are investigated. Systems of equations are employed.

Purchase this Solution
Free BrainMass Quizzes
Know Your Linear Equations

Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.

Solving quadratic inequalities

This quiz test you on how well you are familiar with solving quadratic inequalities.

Geometry - Real Life Application Problems

Understanding of how geometry applies to in real-world contexts

Probability Quiz

Some questions on probability

Exponential Expressions

In this quiz, you will have a chance to practice basic terminology of exponential expressions and how to evaluate them.

View More Free Quizzes
Related BrainMass Solutions

  • Portfolio : Beta Coefficient

    All stocks are of equal weights in your portfolio, both before and after these transactions. ( Hint: each stock weighs 5% before and 4% after the transactions) a) After selling the stocks from the portfolio, what would be the total beta of the remaining

  • MBA Question Finance: Defining Terms

    An example of an efficient portfolio is a market portfolio such as stocks, bonds, and commodities.

  • Compute portfolio return

    its ROE ratio will be.

  • Expected Return, Standard Deviation, CAPM, Beta, CAL

    Answers to questions on expected return on a three -asset portfolio, expected return on the stocks based on CAPM, price of a stock, reward-to-variability ratio of a risky portfolio, CAL ( Capital Allocation Line) etc.

  • Stock Dividends or Splits may increase P/E and public ownership

    263947 Stock Dividends or Splits may increase P/E and public ownership Most firms would like to have their stock selling at high P/E ratio, and they would also like to have extensive public ownership (many different shareholders).

  • Risk and return simulation analysis

    I invested in all the four stocks to keep the portfolio diversified and to reduce the stock specific risks. Expected return on my allocation of funds in such a way is 9.20 % and the Sharpe ratio is also quite high at 25.86 %.

  • The SEC and financial review questions

    quote: The current selling price of a particular stock. 13. mutual fund: A collection of securities in a portfolio that is managed by an investment company. 14. P/E ratio: Ratio of market price to a company's earnings per share. 15.

  • Stocks and Bonds

    Bonds offset the inherent volatility of stocks with their predictable returns and relative security. There are several ways to determine the proper stocks to bonds ratio in your portfolio - some are quite complicated.

  • Corrolation of stocks

    Total variance will be improved only if the correlation of the new asset and the existing portfolio is less than the ratio of the smaller standard deviation divided by the larger one.

View More Related Solutions