Suppose that you have invested $100,000 invested in the market portfolio and that the stock price of Taggart Transcontinental suddenly drops to $7.80 per share.Which of the following trades would you need to make in order to maintain your investment in the market portfolio: 1.Buy approximately 1,140 shares of Taggart Transcontinental
2) Sell approximately 256 shares of Rearden Metal
3) Sell approximately 57 shares of Wyatt Oil
4) Sell approximately 148 shares of Nielson Motors
A) 1 only
B) 2 only
C) 2, 3, and 4 only
D) 1, 2, 3, and 4
E) None of the above
Correct Answer:
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Q12: Which of the following statements is FALSE?
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