Question: Using the data in Problem 4, suppose you are holding a market portfolio, and have invested $12,000 in Stock C. a. How much have you
Using the data in Problem 4, suppose you are holding a market portfolio, and have invested
$12,000 in Stock C.
a. How much have you invested in Stock A?
b. How many shares of Stock B do you hold?
c. If the price of Stock C suddenly drops to $4 per share, what trades would you need to make to maintain a market portfolio?
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