Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 6. consider a world that only consists of the thre

6. Consider a world that only consists of the three stocks shown in the following...

50.1K

Verified Solution

Question

Accounting

image

6. Consider a world that only consists of the three stocks shown in the following table: Stock First Bank Fast Mover Funny Bone Total Number of Shares Outstanding 100 Million 50 Million 200 Million Current Price per Share $100 $120 $30 Expected Return 18% 12% 15% a. Calculate the total value of all shares outstanding currently. b. What fraction of the total value outstanding does each stock make up? c. You hold the market portfolio, that is, you have picked portfolio weights equal to the answer to part b (that is, each stock's weight is equal to its contribution to the fraction of the total value of all stocks). What is the expected return of your portfolio

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Assume that military aircraft use ejection seats designed for men weighing between 149.6149.6 lb and 212212 lb. If​ women's weights...

Statistics
Q

0 10 pts 399 Details Use your calculator to evaluate cos 0 22 to at...

Basic Math
Q

Question 1 What is the value of 24cos x sin x dx

Calculus
Q

Current Attempt in Progress Ayayai Limited reports the following information: sales $1,262,600; cost of goods...

Accounting
Q

A firm has two types of sales for one product: online and mail order. The...

Accounting
Q

Ivanhoe Company's income statement contained the following condensed information. Ivanhoe Company Income Statement For the...

Accounting
Q

Lucido Products markets two computer games: Claimjumper and Makeover, A contribution format income statement for...

Accounting
Q

If the materials price variance is $2800 favorable and the materials quantity and labor variances...

Accounting
Q

8 Required information [The following information applies to the questions displayed below.) Part 1 of...

Accounting
Q

What is e government systems Give at least 5 real life examples and applications with...

Accounting
Q

when should a corporate or business unit outsource a function or activity?

Accounting
Q

R 23-6A Omonia Manufacturing has planned a cash budget for the first six months of...

Accounting