Top Posters
Since Sunday
18
s
5
C
4
j
4
s
4
W
3
a
3
H
3
s
3
a
3
o
3
K
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
EpiscoWhat EpiscoWhat
wrote...
Go to Answer
Posts: 268
Rep: 4 0
5 years ago
Suppose that you have $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 1140 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
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 499 times
1 Reply
Replies
Answer verified by a subject expert
EgorGruzdevEgorGruzdev
wrote...
#1
Posts: 422
Rep: 16 0
5 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
E
Explanation:  E) There is no need to rebalance your portfolio.  As an investor, you still hold the market portfolio and therefore there are no trades needed.

Related Topics

EpiscoWhat Author
wrote...

5 years ago
Brilliant ツ
brina10
wrote...

Yesterday
Good timing, thanks!
sadiewolf
wrote...

2 hours ago
Thanks
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  72 People Browsing
 293 Signed Up Today
Start New Topic Take the Tour Study Tips Study ToolsNew Topics Trending Browse by Textbook
Related Images
  
 161
  
 176
  
 71
Your Opinion
Which country would you like to visit for its food?
Votes: 126
Previous poll results: Do you trust social media networks with protecting your privacy?