Suppose You Own a Portfolio That Has 500 Shares of SHC

question 52

Multiple Choice

Suppose you own a portfolio that has 500 shares of SHC Company and 1,000 shares of MHC Company.The stock prices of SHC and MHC at the time of purchase were $40 and $25 per share,respectively.Given the following forecasts,what is the expected return for the portfolio?

• A) 7.61%
• B) 7.89%
• C) 11.94%
• D) 12.56%

Comprehend the objectives of risk management, particularly in reducing the volatility of cash flows.

Identify strategies to protect against interest rate changes.

Grasp the concept and daily process of marking-to-market in futures contracts.

Understand the structure and comparison of various financial instruments with credit default swaps.

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