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02-20-2013, 03:47 PM | #1 |
Quit your bullshit
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You're making this too hard. You don't have to blend all four. It's a lot easier to blend 2 and put it into a simple algebraic equation.
For example, you can use holdings 1 (x) and 3 (y). x(8.5) + y(3.1) = 6.5% is your equation. Now, you have to express x in terms of y. Because x+y= 100% (1.00) of your investment, x=1.00-y Now, you re-write the equation with only the y variable: (1-y)(8.5)+y(3.1)=6.5 Do the multiplication: 8.5-8.5y+3.1y=6.5 Simplify further 8.5-5.4y=6.5 Subtract 6.5 from both sides of the equation 2-5.4y=0 Add 5.4y to both sides 2=5.4y Divide both sides by 5.4 to solve for y .37=y 37% of your investment should be in y. The rest (1-y) should be in x. Check your work: .37(.031)+.63(.085)=.065
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02-20-2013, 08:38 PM | #2 | |
In Search of a Life
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Quote:
EDIT: We are essentially doing the same thing... I just eliminated 2 of the options by giving each a 25% value. Didn't mean to come across as my way was better Saul Good! Hope you didn't take it that way. Last edited by Coogs; 02-20-2013 at 09:54 PM.. |
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02-22-2013, 10:18 AM | #3 | |
Quit your bullshit
Join Date: Jul 2005
Location: Bored of winning
Casino cash: $10052799
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Quote:
Standard algebra is really all that is needed here, and it's about a 30 second solution. I don't feel like math instructors do a good enough job of translating their teachings into practical applications. There really isn't any point in learning algebra if you don't know how to apply it. If you do, it's actually extremely useful and comes in handy a lot more often than most people probably realize. Then, when you use it, people look at you like you just explained string theory even though you're just really busting out something you learned in 7th grade.
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