Mr. Slater invested $100,000 in a portfolio that is contains 60% stocks and 40% bonds. Over the course of a year, the value of the stocks
increased to 67%, and the value of the bonds decreased to 33%. The current value of his investment is $118,400. How much should Mr. Slater
move from stocks to bonds to rebalance his portfolio to 60% stocks and 40% bonds?
A.
$8,900
OB. $8,500
C.
$8.288
D.
$8,100

Mr. Slater invested $100,000 in a portfolio that is contains 60% stocks and 40% bonds. Over the course of a year, the value of the stocks increased to 67%, and the value of the bonds decreased to 33%. The current value of his investment is $118,400. How much should Mr. Slater move from stocks to bonds to rebalance his portfolio to 60% stocks and 40% bonds?

A.  

$8,900

B.  

$8,500

C.  

$8,288

D.  

$8,100

Step-by-step explanation:

#platofam

It is better to use completing the square method to solve this quadratic equation.