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Please help 3 - Suppose you had $ 1 0 0 , 0 0 0 in investments at the beginning of the year that consisted
Please help
Suppose you had $ in investments at the beginning of the year that consisted of a
diversified portfolio of stocks percent and bonds percent The returns over the past
months were percent on stocks and percent on bonds.
a What is the portfolio return for the year?
b If you wanted to rebalance this portfolio to its original position, what specific actions
should you take?
You invested a total of $ in two stocks in each with different betas: stock A
with a beta of and stock B with a beta of
a If the stock market rises percent over the next year, what will be the value of each
investment?
b If the stock market declines percent over the next year, what will be the value of each
investment?
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