Question
In August 2011, Bank of Hawaii (BOH) stock cost $45 per share, yielded 4% per year in dividends, and had a risk index of 3.0
In August 2011, Bank of Hawaii (BOH) stock cost $45 per share, yielded 4% per year in dividends, and had a risk index of 3.0 per share, while JPMorgan Chase (JPM) stock cost $40 per share, yielded 2.5% per year in dividends, and had a risk index of 2.0 per share. You have up to $25,000 to invest in these stocks, and would like to earn at least $796 in dividends over the course of a year. (Assume the dividends to be unchanged for the year.) How many shares (to the nearest tenth of a unit) of each stock should you purchase to meet your requirements and minimize the total risk index for your portfolio?
Bank of Hawaii | shares |
JP Morgan Chase | shares |
What is the minimum total risk index? (Round your answer to two decimal places.)
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