Question
You are requested to construct a portfolio consisting of several constituents of the S&P500 (US) or the FTSE100 (UK). Assume that your initial endowment is
You are requested to construct a portfolio consisting of several constituents of the S&P500 (US) or the FTSE100 (UK). Assume that your initial endowment is equal to $100K and that a 1% transaction fee is applied.
- How many securities are you intending to hold and why?
- Which securities are you going to choose and why?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
