CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

The required ownership for the investor is 60%, the existing number of shares is 1 million. The number of shares the investor requires to achieve her desired ownership fraction is:

A. 600,000.
B. 666,667.
C. 1,500,000.
Correct Answer: C

y/(y + 1000000) = 0.6. y = 1,500,000.

User Contributed Comments 1

User Comment
JimM x = total # of shares after investment
x = 0.6x + 1,000,000
0.4x = 1,000,000
x = 2,500,000
Therefore, 1,000,000 originally and 1,500,000 new ones
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