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An investor owns 10,000 shares of a particular stock. The current market price is $80.What is the worst-case value of the portfolio in six months?
An investor owns 10,000 shares of a particular stock. The current market price is $80.What is the worst-case value of the portfolio in six months? For the purposes of this question, define the worst-case value of the portfolio as the value that is such that there is only a 1% chance of the actual value being lower. Assume that the expected return on the stock is 8% and its volatility is 20%.
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