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Suppose you are holding the market portfolio shown in the table and have invested $19,000 in stock C stock price/share ($) Number of shares outstanding
Suppose you are holding the market portfolio shown in the table and have invested $19,000 in stock C
stock | price/share ($) | Number of shares outstanding (millions) |
A | 8 | 10 |
B | 20 | 14 |
C | 6 | 1 |
D | 51 | 4 |
E | 43 | 21 |
A: How much have you invested in Stock A? | |||||||||||||
B: How many shares of stock B do you hold? | |||||||||||||
C: If the Price of Stock C suddenly drops to $3 per share, what trade in Stock C do you need to execute to maintain your portfolio at the same proportions as the market portfolio? |
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