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Two portfolios were constructed, one consisting of equity shares and the other consisting of debentures. The value of equity shares, at the time of
Two portfolios were constructed, one consisting of equity shares and the other consisting of debentures. The value of equity shares, at the time of constructing the portfolio was Ksh. 120,000/- (at the rate of Ksh.200/- per share) and that of debentures was Ksh. 80,000/-.The investor opts to use constant value plan and fixes a revision point of 15%. The share prices show fluctuations at periodical intervals as under. Period 1 23456 Share price (Ksh.) 200 (at the start i.e., at the time of constructing the portfolio) 180 170 150 160 190 Required: Explain the portfolio revision pattern of the investor.(15 marks)
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