Question
Marjory Duffin's portfolio manager has suggested two high-yielding stocks: European Emerald Emporium (EEE) and Royal Ruby Retailers (RRR). EEE shares cost $50, yield 4.5% in
Marjory Duffin's portfolio manager has suggested two high-yielding stocks: European Emerald Emporium (EEE) and Royal Ruby Retailers (RRR). EEE shares cost $50, yield 4.5% in dividends, and have a risk index of 2.0 per share. RRR shares cost $55, yield 5% in dividends, and have a risk index of 3.0 per share. Marjory has up to $17,300 to invest and would like to earn at least $795 in dividends. How many shares of each stock should she purchase to meet her requirements and minimize the total risk index for her portfolio?
European Emerald Emporium ________shares
Royal Ruby Retailers _________shares
What is the minimum total risk index? __________
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