mohitester
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- Jun 18, 2026
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An investor has $100,000 to invest in the stock market. She is interested in developing
a stock portfolio made up of stocks on the New York Stock Exchange (NYSE), the
Toronto Stock Exchange (TSX), and the NASDAQ. The stocks are Coca Cola and Disney
(NYSE), Barrick Gold (TSX), and Amazon (NASDAQ). However, she doesn’t know how much to invest
in each one. She wants to maximize her return, but she would also like to minimize the risk. She has
computed the monthly returns for all four stocks during a 60-month period (January 2005 to
December 2009). After some consideration, she narrowed her choices down to the following three.
What should she do?
1. $25,000 in each stock
2. Coca Cola: $10,000, Disney: $20,000, Barrick Gold: $30,000, Amazon: $40,000
3. Coca Cola: $10,000, Disney: $50,000, Barrick Gold: $30,000, Amazon: $10,000
a stock portfolio made up of stocks on the New York Stock Exchange (NYSE), the
Toronto Stock Exchange (TSX), and the NASDAQ. The stocks are Coca Cola and Disney
(NYSE), Barrick Gold (TSX), and Amazon (NASDAQ). However, she doesn’t know how much to invest
in each one. She wants to maximize her return, but she would also like to minimize the risk. She has
computed the monthly returns for all four stocks during a 60-month period (January 2005 to
December 2009). After some consideration, she narrowed her choices down to the following three.
What should she do?
1. $25,000 in each stock
2. Coca Cola: $10,000, Disney: $20,000, Barrick Gold: $30,000, Amazon: $40,000
3. Coca Cola: $10,000, Disney: $50,000, Barrick Gold: $30,000, Amazon: $10,000