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20 Consider the following information at Price Stock Alpha Beta Gama 200,000 300,000 400,000 Price at time t0 $20.00 $30.00 $10.00 time t 0.00 $2.00

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20 Consider the following information at Price Stock Alpha Beta Gama 200,000 300,000 400,000 Price at time t0 $20.00 $30.00 $10.00 time t 0.00 $2.00 S0.50 at time t $22.00 $30.00 $9.00 Assume that you have $10,000 and that you invest it in these three securities If you invest your funds in an equally-weighted portfolio that consists of Alpha, Beta, and Gama, what is the one year holding period return on your investment? a b If you invest your funds in a value weighted portfolio that consists of Alpha, Beta, and Gama, what is the one year holding period return on your investment? c What trades must you make at time tl (after dividends are paid) if you want your equally weighted portfolio to remain equally weighted? d. What trades must you make at time tl (after dividends are paid) if you want your value weighted portfolio to remain value-weig hted

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