stock
The share price of the reference day (USD)
Current Stock Price (USD)
Number of shares in circulation (Manchuria)
A
800
1000
1000
B
900
1200
500
C
700
800
500
Suppose that only three assets and risk-free assets are traded
in the market.
The market is now in equilibrium.
Now, let's say that the stock price index is calculated by weighted
average of the risky assets in the market based on market
capitalization.
1)If the benchmark stock price index is 100, what is the current
stock price index?You can answer in natural numbers.
2)An investor is trying to invest a total of 5 million won in a
market portfolio.What is the investment in stock B?
3)Let's say that an investor has 10 million won.
Depending on the degree of your risk aversion, you are willing to
invest 20% in risk-free assets and 80% in a market portfolio.What
is the amount invested in stock B?
4)Let's say that an investor has 10 million won.
Depending on the degree of one's risk aversion, 50% of the funds he
has are risk-free borrowing, and after borrowing, he tries to
invest all the amount in the market portfolio.What is the amount of
investment in stock B at this time?
stock The share price of the reference day (USD) Current Stock Price (USD) Number of shares in circulation (Manchuria) A
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