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Other Fields Homework Help Finance Topic started by: prpnum1 on Mar 21, 2022



Title: Tatiana is following a fixed weighting approach to managing her portfolio, which on January 1 ...
Post by: prpnum1 on Mar 21, 2022
Tatiana is following a fixed weighting approach to managing her portfolio, which on January 1 consisted of 45% common stock, 40% bonds, and 15% short-term securities.  Because stocks had a good year, at the end of the year, it consisted of 55% common stock, 35% bonds and 10% short-term securities. As a result,

▸ Tatiana should leave her portfolio as it is to take advantage of momentum in stocks.

▸ she should sell stock and buy bonds and short-term securities to restore the original weightings.

▸ she should sell stock index futures to protect herself from falling prices.

▸ she should sell stock and increase the proportions of bonds and short-term securities because she is now one year older.


Title: Tatiana is following a fixed weighting approach to managing her portfolio, which on January 1 ...
Post by: eeemmm on Mar 21, 2022
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