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Consider a world that only consists of the three stocks shown in the following table: : a. Calculate the total value of all shares outstanding
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 portfolio? 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 portfolio for Funny Bone is %. (Round 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.) Stock First Bank Fast Mover Funny Bone Total Number of Shares Outstanding 90 million 59 million 190 million Current Price per Share $82 $104 $24 Expected Return 16% 12% 18%
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