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The Toronto Dominion (TD) bank has three classes of securities: 1) corporate bonds; 2) preferred shares; and 3) common shares. In equilibrium, which should have
The Toronto Dominion (TD) bank has three classes of securities: 1) corporate bonds; 2) preferred shares; and 3) common shares. In equilibrium, which should have the lowest yield? 1) Corporate bonds 2) Preferred Shares 3) Common Shares 1 Company A Company B Day Price # of Shares Price # of Shares $8.00 900 $12.00 1800 2 $8.64 900 $13.56 1800 The Tiny stock market has two companies listed on the exchange. Data for the two shares is given in the table. The Tiny Market Index (TMI) is value-weighted. You want to build a portfolio to mimic the index. You already own 9 share of Company A. How many shares of Company B do you need to buy so that the return on your portfolio matches the index? Round your answer to the nearest whole number without any decimals
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