As of December 12 this year, Claudia currently owns 75 shares of EFG Corporation, a publicly- traded NYSE firm, valued at $42.65 per share. Her original basis in the stock, acquired earlier this year on June 15, is at $51.35 per share. Claudia likes the stock and believes that it will be a profitable long term investment in her portfolio. If she sells the stock on December 15th of this year to claim a loss for year-end income tax planning purposes, when should she plan to repurchase the shares in her portfolio?
January 1 of the following year
January 16 of the following year
December 16 of this current year
June 16th of the following year
December 16th of the following year
2. An investor is looking to establish a well-diversified investment portfolio for the long-term. The investor is a proponent of the Efficient Market Hypothesis, and wishes to employ multiple asset classes in the design of the portfolio. An appropriate measure to gauge and manage the risk characteristics of the portfolio's construction would be:
Correlation Coefficient of the individual assets in the portfolio
Standard Deviation of the overall portfolio
Covariance statistics for each of the holdings in the portfolio
Sharpe Performance Ratio of the portfolio
Beta of the S & P 500