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



Title: Zachary holds 15 stocks in his portfolio. The portfolio's return last year was 11%, but one stock, ...
Post by: onlineerica on Mar 21, 2022
Zachary holds 15 stocks in his portfolio.  The portfolio's return last year was 11%, but one stock, RJH, doubled in value.  What should Zachary do if he wants to be as diversified as he was at the beginning of the year?

▸ Sell some of the RJH because it now constitutes a higher percentage of his holdings.

▸ Sell the worst performing stock and use the proceeds to buy more RJH.

▸ Wait for the price for RJH and the remaining stocks to rise so the proportions are reestablished.

▸ Sell the RJH and buy a cheaper stock in the same industry.


Title: Zachary holds 15 stocks in his portfolio. The portfolio's return last year was 11%, but one stock, ...
Post by: micp3537 on Mar 21, 2022
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