Question 1201493
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Here is a quick and easy informal method for solving any 2-part "mixture" problem like this.<br>
The yield from the bond is 4%.<br>
The yield on the stock is 0.5/20 = 2.5%.<br>
The desired (minimum) overall yield is 3%.<br>
3% is "twice as close" to 2.5% as it is to 4%.<br>
That means the overall yield of 3% is achieved when the amount of the investment in the stock is twice the amount of the investment in the bond.<br>
Since the amount of the investment in the bond was $5000, the amount of the investment in the stock should be $10,000.<br>
Since the stock sells at $20 per share, the number of shares to purchase to achieve on overall yield of 3% is 10000/20 = 500.<br>
ANSWER: 500 shares<br>
NOTE: The problem is not well stated.  Buying 500 shares of the stock will result in an overall yield of EXACTLY 3%.  The answer that is asked for is the number of shares to buy to make the overall yield HIGHER THAN 3%.  The answer to that question is any number of shares LESS THAN 500.<br>