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Company Shares Price Expected Return First Bank 8 2 million $ 8 8 2 2 % Fast Mover 5 0 million $ 1 2 3

Company Shares Price Expected Return
First Bank 82 million $8822%
Fast Mover 50 million $12312%
Funny Bone 202 million $2713%
consider a world that only consists of the three stocks shown in the following table:
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 with 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 portiolio?
a. Calculate the total value of all shares outstanding currently.
The total value of all shares outstanding currently is $ million. (Round to the nearest integer.)
b. What fraction of the total value outstanding does each stock make up?
The weight in the portfolio for First Bank is
%.(Round to two decimal places.)
The weight in the portfolio for Fast Mover is
%.(Round to two decimal places.)
The weight in the portiolio for Funny Bone is
%, Finund to two decimal places.)
c. You hold the market portfolio, that is, you have picked portfolio weights equal to the answer to part b with 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?
The expected return of your portfolio is
(Round to two decimal places.)
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