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Question 13 You want to buy $16000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have $6000 of your own money to invest. You will borrow the remainder by short-selling the risk free asset. What is the portfolio weight for the risk free asset? Express your answer in decimal form (not percentage) and round your answer to two decimal places. Answer: 0.63

Question 13 You want to buy $16000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have $6000 of your own money to invest. You will borrow the remainder by short-selling the risk free asset. What is the portfolio weight for the risk free asset? Express your answer in decimal form (not percentage) and round your answer to two decimal places. Answer: 0.63

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 13 You want to buy $16000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have $6000 of your own money to invest. You will borrow the remainder by short-selling the risk free asset. What is the portfolio weight for the risk free asset? Express your answer in decimal form (not percentage) and round your answer to two decimal places. Answer: 0.63
Transcribed Image Text:Question 13 You want to buy $16000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have $6000 of your own money to invest. You will borrow the remainder by short-selling the risk free asset. What is the portfolio weight for the risk free asset? Express your answer in decimal form (not percentage) and round your answer to two decimal places. Answer: 0.63
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