Let x = number of units of Beta Banking, Inc., and y = number of units of Gamma Go Corp.

The cost data may be set up in the following table:

That gives one equation:

dividing by 9 reduces this to

For the second equation, we use the fact that you wish to hold twice as many Gamma Go shares as Beta Banking shares. Rephrasing this gives:

the number of units of Gamma go is twice the number of units of Beta Banking, or

This leads to the system

which has solution (50, 100). Thus, you should purchase 50 shares of Beta Banking, Inc., and 100 shares of Gamma Go Corp.

 


To return to the review exercises, just close this window.