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A portfolio manager wants to create a simple portfolio from only two stocks, A and B. The returns for stocks A and B are
Posted: Thu May 19, 2022 12:16 am
by answerhappygod
- A Portfolio Manager Wants To Create A Simple Portfolio From Only Two Stocks A And B The Returns For Stocks A And B Are 1 (26.04 KiB) Viewed 28 times
A portfolio manager wants to create a simple portfolio from only two stocks, A and B. The returns for stocks A and B are given by the following equations: RA= 0.09 - 1FINF + 1FGDP + EA and Rs = 0.12 + 2F INF + 4FGDP + €8 The manager forms a portfolio with market value weights of 40% in Stock A and 60% in Stock B. What is the sensitivity to the portfolio of a 1% rise in inflation?