Wendell invests $10,000 in a stock portfolio made up of Petroleum Special at $30 per share, New shoes at $12 per share, and Capital beans and Sprouts at $2.50 per share. He places 60 percent of the money in P.S., 30 percent in N, and 10 percent in B & S. With market values changing (P.S. down $3.12, N up 80 percent, and B & S up $0.20), what is his portfolio worth 6 months later?
This looks more like economics than biomechanics.
http://en.wikipedia.org/wiki/Biomechanics
To calculate the value of Wendell's stock portfolio 6 months later, we need to calculate the changes in the market value of each stock and then multiply it by the number of shares owned.
First, let's calculate the number of shares Wendell owns for each stock:
For Petroleum Special (P.S.):
Wendell invests 60% of $10,000, which is $6,000.
Since each P.S. share is priced at $30, the number of P.S. shares Wendell owns is $6,000 / $30 = 200 shares.
For New shoes (N):
Wendell invests 30% of $10,000, which is $3,000.
Since each N share is priced at $12, the number of N shares Wendell owns is $3,000 / $12 = 250 shares.
For Capital beans and Sprouts (B & S):
Wendell invests 10% of $10,000, which is $1,000.
Since each B & S share is priced at $2.50, the number of B & S shares Wendell owns is $1,000 / $2.50 = 400 shares.
Next, let's calculate the changes in market value for each stock:
For Petroleum Special (P.S.):
The market value of P.S. stocks decreased by $3.12 per share.
So the change in market value for the P.S. shares is -$3.12 * 200 = -$624.
For New shoes (N):
The market value of N stocks increased by 80%.
So the change in market value for the N shares is $12 * 80% * 250 = $2,400.
For Capital beans and Sprouts (B & S):
The market value of B & S stocks increased by $0.20 per share.
So the change in market value for the B & S shares is $0.20 * 400 = $80.
Now, let's calculate the updated value of Wendell's stock portfolio:
The initial value of the P.S. shares is $30 * 200 = $6,000.
After the market value changes, the value of the P.S. shares becomes $6,000 - $624 = $5,376.
The initial value of the N shares is $12 * 250 = $3,000.
After the market value changes, the value of the N shares becomes $3,000 + $2,400 = $5,400.
The initial value of the B & S shares is $2.50 * 400 = $1,000.
After the market value changes, the value of the B & S shares becomes $1,000 + $80 = $1,080.
Finally, the total value of Wendell's stock portfolio 6 months later is $5,376 + $5,400 + $1,080 = $11,856.