Question
Assume that we are interested in constructing a price-weighted portfolio with three stocks: A, B and...
Assume that we are interested in constructing a price-weighted portfolio with three stocks: A, B and C, selling at $15, $50, and $35 respectively. The number of shares outstanding for A, B and C are 3, 2, and 4 millions respectively. If our initial wealth is $1 million, how many shares would you buy in each stock?
| 150,000; 500,000; 350,000 |
| 10,526; 7,018; 14,035 |
| 10,000; 10,000; 10,000 |
| 157,895; 350,877; 491,228 |
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