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1. There are only 3 stocks in the market, as detailed below: Number of shares Price per share A 1000 $20 B 3000 $20 3000
1. There are only 3 stocks in the market, as detailed below: Number of shares Price per share A 1000 $20 B 3000 $20 3000 $40 What are the proportions in the market portfolio, M? How do these proportions change if the price of stock C goes down to $20? If an investor holds M before the price change, how many shares of each stock should he buy or sell is order to continue holding M after the price change
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