Multiple Choice
Use the following information to answer the question(s) below.
Suppose all possible investment opportunities in the world are limited to the four stocks listed in the table below:
-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
Correct Answer:

Verified
Correct Answer:
Verified
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