An investor has a £40,000 portfolio, 40% of which is invested in bonds.The investor wishes to add funds to the portfolio by purchasing bonds so that 52% of the entire portfolio is invested in bonds. What value of bonds should the investor purchase?
My solution is as follows:
40% of the portfolio is £16,000, and 52% of the portfolio is £20,800. Thus in order for the portfolio to be consist of 52% bonds, the investor must purchase £20,800 - £16,000 = £4,800 worth of bonds. Once the investor has spent an extra £4,800 on bonds, this brings the total amount spent on bonds to £20,800, which is 52% of the portfolio.
The actual answer is £10,000. How is my solution wrong and where am I misunderstanding?