Use the Following Information to Answer the Question(s)below

question 101

Multiple Choice

Use the following information to answer the question(s) below.
Suppose all possible investment opportunities in the world are limited to the four stocks listed in the table below:
-Suppose that you have $100,000 invested in the market portfolio and that the stock price of Taggart Transcontinental suddenly drops to $7.80 per share.Which of the following trades would you need to make in order to maintain your investment in the market portfolio: 1.Buy approximately 1140 shares of Taggart Transcontinental
2.Sell approximately 256 shares of Rearden Metal
3.Sell approximately 57 shares of Wyatt Oil
4.Sell approximately 148 shares of Nielson Motors

• A)1 only
• B)2 only
• C)2,3,and 4 only
• D)1,2,3,and 4
• E)None of the above

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Definitions:

Excessive Control

A situation where the level of regulation or direction exceeds what is considered normal or necessary, often leading to inefficiencies or reduced autonomy.

Industry

A sector of the economy that produces goods or services, often categorized by the type of activity involved, such as manufacturing, agriculture, or services.

Public Good

A good or service that is characterized by nonrivalry and nonexcludability. These characteristics typically imply that no private firm can break even when attempting to provide such products. As a result, they are often provided by governments, who pay for them using general tax revenues.

Government

The government refers to the system or group of people governing an organized community, often a state, setting and enforcing laws and policies.