IDNLearn.com offers a unique blend of expert answers and community insights. Ask anything and receive prompt, well-informed answers from our community of experienced experts.
Sagot :
If the values of stock a and stock b is given as below, the investment in both the risky assets be as below:
- stock a with 100 shares outstanding and a price per share of $120
- stock b with 150 shares outstanding and a price per share of $80
So, if an investor invests $1000 in the optimal risky portfolio one should invest the following amount in each of the 2 risky assets=
100*120 which is $12000 should be the total value of the stock a
80*150 which is $12000 should be the total value of the stock b
Now, since both are of equal value the investor can invest half in each stock which $500 in both stock a and stock b.
Learn more about risky assets here brainly.com/question/17422326
#SPJ4
Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! Thank you for trusting IDNLearn.com. We’re dedicated to providing accurate answers, so visit us again for more solutions.
