Question
Assume that the total market value of an initial portfolio is $300,000. Suppose the weights of E and B in the risky portfolio are 0.54
Assume that the total market value of an initial portfolio is $300,000. Suppose the weights of E and B in the risky portfolio are 0.54 he 0.46, respectively. Suppose that the owner of this portfolio wishes to decrease risk by reducing the allocation to the risky portfolio from y = 0.7 to y = 0.56. How do you reallocate your risky portfolio?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
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