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?

Question

Uniteasy Admin · Accepted Answer

Let x dollars of stock to be converted to cash

$$\dfrac{x+75000}{5000+75000}  =0.8$$

$$x+75000 = 125000	imes 0.8 = 100000 $$
Therefore,
$$x = 25000$$
D is the choice

Multiple Choice Question (MCQ)

Answer