Stocks A, B and C are priced at rupees 120, 90 and 150 per share, respectively. A trader holds a portfolio consisting of 10 shares of stock A, and 20 shares of stocks B and C put together. If the total value of her portfolio is rupees 3300, then the number of shares of stock B that she holds, is
Correct Answer :
Solution :
The correct answer is 15.
Let the number of shares of stock A, B, and C be denoted as nA, nB, and nC respectively. We are given the following prices per share:
We are told that the trader holds 10 shares of stock A. Therefore, the total value of the shares of stock A in the portfolio is:
The total value of the entire portfolio is given as 3300. This means the combined value of the shares of stock B and C must be the total portfolio value minus the value of the shares of stock A:
We are also given that the total number of shares of stock B and stock C put together is 20. Thus, we can write an equation for the number of shares of stock C in terms of the number of shares of stock B:
Now we can set up an equation for the combined value of stocks B and C. The value is the number of shares of stock B times its price plus the number of shares of stock C times its price:
Substitute our expression for nC into this equation:
Expand the expression on the left side:
Combine the nB terms together:
Subtract 3000 from both sides:
Divide both sides by -60 to solve for the number of shares of stock B:
Therefore, the number of shares of stock B that she holds is 15.
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