Suppose all possible investment opportunities in the world are limited to the four stocks list in the table below: Suppose that an investor has $100000 invested in the market portfolio and that the stock price of Taggart drops with 50%. Which of the following trades would you need to make in order to maintain your investment in the market portfolio?

1. Buy approx. 1140 shares of Taggart
2. Sell approx. 256 shares of Rearden Metal
3. Sell approx. 57 shares of Wyatt Oil
4. Sell approx. 148 shares of Nielson Motors

A) 1 only B) 2, 3 and 4 C) 1, 2, 3 and 4 D) 5 only

Stock	Price per share	Numbe of shares oustanding (millions)
Taggart Transcontinental	$15.60	25
Rearden Metal	$13	45
Wyatt Oil	$29,25	10
Nielson Motors	$26,25	26