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3. Consider a world that only consists of the three stocks shown in the following table: Current Price Total Number of Shares Outstanding Expected Return

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3. Consider a world that only consists of the three stocks shown in the following table: Current Price Total Number of Shares Outstanding Expected Return Stock per Share First Bank 100 million $100 18% Fast Mover 50 million $120 12% Funny Bone 200 million $30 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

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