Multiple Choice Question (MCQ)

Ms. Hobbes has a portfolio that includes $50,000 in stock,$75,000 in cash, and no other holdings. If she wishes to redistribute her holdings so that 80 percent of the portfolio is in cash, how many dollars of stock must she convert to cash?

1. ×

10,000

2. ×

15,000

3. ×

20,000

4. 25,000

5. ×

30,000

Collected in the board: Algebraic equation

Steven Zheng posted 5 months ago

1. Let x dollars of stock to be converted to cash

\dfrac{x+75000}{5000+75000} =0.8

x+75000 = 125000\times 0.8 = 100000

Therefore,

x = 25000

D is the choice

Steven Zheng posted 5 months ago

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