Suppose that General Motor (GM) and Tesla Inc. (TSLA) were trading at $10.70 and $20.69 at...
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Suppose that General Motor (GM) and Tesla Inc. (TSLA) were trading at $10.70 and $20.69 at "t=0," respectively. Further, you invested $10,000 in an equal weighted portfolio of GM and TSLA stocks at "t=0." After this the prices of GM and TSLA stocks changed to $17.81 and $29.79 at "t=1," respectively. Also, subsequent to these changes in prices you rebalanced your portfolio to ensure that it remains equal weighted. This rebalanced portfolio has number of shares of TSLA. (Negative amounts should be indicated by a minus sign. Round your final answer to 2 decimal places, e.g. 110.10) Suppose that General Motor (GM) and Tesla Inc. (TSLA) were trading at $10.70 and $20.69 at "t=0," respectively. Further, you invested $10,000 in an equal weighted portfolio of GM and TSLA stocks at "t=0." After this the prices of GM and TSLA stocks changed to $17.81 and $29.79 at "t=1," respectively. Also, subsequent to these changes in prices you rebalanced your portfolio to ensure that it remains equal weighted. This rebalanced portfolio has number of shares of TSLA. (Negative amounts should be indicated by a minus sign. Round your final answer to 2 decimal places, e.g. 110.10)
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To calculate the number of shares of TSLA in the rebalanced portfolio we need to determine the value ... View the full answer
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
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