Using the data in Problem 4, suppose you are holding a market portfolio, and have invested $12,000

Question:

Using the data in Problem 4, suppose you are holding a market portfolio, and have invested

$12,000 in Stock C.

a. How much have you invested in Stock A?

b. How many shares of Stock B do you hold?

c. If the price of Stock C suddenly drops to $4 per share, what trades would you need to make to maintain a market portfolio?

Appendix

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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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