Question
stock The share price of the reference day (USD) Current Stock Price (USD) Number of shares in circulation (Manchuria) A 800 1000 1000 B 900
stock | The share price of the reference day (USD) | Current Stock Price (USD) | Number of shares in circulation (Manchuria) |
A | 800 | 1000 | 1000 |
B | 900 | 1200 | 500 |
C | 700 | 800 | 500 |
Suppose that only three assets and risk-free assets are traded in the market. The market is now in equilibrium. Now, let's say that the stock price index is calculated by weighted average of the risky assets in the market based on market capitalization. 1)If the benchmark stock price index is 100, what is the current stock price index?You can answer in natural numbers. 2)An investor is trying to invest a total of 5 million won in a market portfolio.What is the investment in stock B? 3)Let's say that an investor has 10 million won. Depending on the degree of your risk aversion, you are willing to invest 20% in risk-free assets and 80% in a market portfolio.What is the amount invested in stock B? 4)Let's say that an investor has 10 million won. Depending on the degree of one's risk aversion, 50% of the funds he has are risk-free borrowing, and after borrowing, he tries to invest all the amount in the market portfolio.What is the amount of investment in stock B at this time?
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