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This is my assignment that was in week 3.
With $25,000 to invest in the three companies, the amount allocated to American Express will be $8,000, S&P Global $10,000, and Citigroup $7,000. Clearly, investment to Citigroup is the highest since the company’s shares are expensive to purchase, but with higher earnings and dividends. The fact that these shares are relatively expensive requires that substantial amount of money is required to purchase a good number of shares from the company. On the other hand, American Express is allocated $8,000 because the company has been performing well in the recent past, and there are projections that investing in the company will earn investors good returns. Lastly, Citigroup is allocated the least amount of $7,000. However, this does not mean that the investment is less important. The company has the cheapest shares, and performing incredibly well in the stock market. Investing in the company will guarantee substantial returns since it is one of the leading stock companies in terms of sales, profit, assets, and market value according to Forbes (Korom, Lutter & Beckert, 2017).
In American Express, a share price is $85.32. Therefore, the number of shares purchased with $8,000 is $8,000/$85.32 or 93.76 shares. The number of shares purchased in this case is 94. From the Citigroup, as share goes for $66.39. This implies that $7,000 purchase $7,000/$66.39 or 105.44 shares. The shares purchased are 105. S&P Global sells shares at $151.19 per share. With $10,000 allocated, the number of shares purchased is $10,000/$151.19 or 66.14 shares. Since a share cannot be fraction, the number of shares purchased from the S&P Global is 66.
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