Question
You want to buy $22,500 worth of shares in tootsie roll industries Inc. on margin. But you only have $15,000 of your money to invest.
You want to buy $22,500 worth of shares in tootsie roll industries Inc. on margin. But you only have $15,000 of your money to invest. The remaining $7,500 is borrowed by issuing T- Bills; assume the cost of borrowing is the risk - free rate. What is the portfolio weight for the risk free asset (T- bills)?
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Financial Market Analysis And Behaviour The Adaptive Preference Hypothesis
Authors: Emil Dinga, Camelia Oprean Stan, Cristina Roxana Tinisescu, Vasile Brctian, Gabriela Mariana Ionescu
1st Edition
1032255161, 1000609731, 9781032255163, 9781000609738
