Asset classes are us treasury bonds-equities and cash

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Reference no: EM131900656

1. What is your recommendation and justification for, in percentage terms, of an optimal allocation of $1,000,000 among the three asset classes. The asset classes are U.S. Treasury bonds, U.S. equities and cash.

2. Suppose you purchase 5 put contracts on Testaburger Co. The strike price is $40, and the premium is $3. If, at expiration, the stock is selling for $35 per share, what are your put options worth? What is your net profit?

Reference no: EM131900656

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