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Consider a world that only consists of the three stocks shown in the following? table: LOADING... . a. Calculate...

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Question

Finance

Consider a world that only consists of the three stocks shown inthe following? table:

LOADING...

.

a. Calculate the total value of all shares outstandingcurrently.

b. What fraction of the total value outstanding does each stockmake? up?

c. You hold the market? portfolio, that? is, you have pickedportfolio weights equal to the answer to part b with each? stock'sweight is equal to its contribution to the fraction of the totalvalue of all stocks. What is the expected return of your?portfolio?

Stock

Total Number

of Shares Outstanding

Current Price per Share

Expected Return

First Bank

101101 million

?$8282

2020?%

Fast Mover

5959 million

?$132132

1313?%

Funny Bone

190190 million

?$3232

1414?%

Answer & Explanation Solved by verified expert
4.4 Ratings (852 Votes)
First BankFast MoverFunny    See Answer
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