You want to invest 1/3 of your portfolio at the risk-free rate (3%) and the remaining 2/3

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You want to invest 1/3 of your portfolio at the risk-free rate (3%) and the remaining 2/3 in one risky stock A. A will according to you be worth $100 in one year. A does not pay dividends. You want your portfolio to generate expected returns of 9%.

What is the maximum price you'd be willing to buy A?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Jul 10, 2023 06:28 AM

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You want to invest 1/3 of your portfolio at the risk-free rate (3%) and the remaining 2/3

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Income Tax Fundamentals 2013

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