Investments, 11th Edition (exclude Access Card)
Investments, 11th Edition (exclude Access Card)
11th Edition
ISBN: 9781260201543
Author: Zvi Bodie Professor; Alex Kane; Alan J. Marcus Professor
Publisher: McGraw-Hill Education
Question
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Chapter 28, Problem 9CP

A

Summary Introduction

To explain: Identify the aspects to fulfill the investment objective and constrains to justify the appropriate allocation range.

Introduction: Aspects are used to reallocate the money from one stock to another stock. Some tools are used for this process. The total portfolio is 100 in which an expected standard deviation is 12.4.

B

Summary Introduction

To explain: Reallocation of funds including 5-10% in small and 10-15 % in large capitalization.

Introduction: Reallocation method is used to allocate the investment without facing loss. It gives higher return after a period of time. Pre-tax return and standard deviation are used for allocation.

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