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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?
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tableStocktableTotal Numberof Shares OutstandingtableCurrent Price perShareExpected ReturnFirst Bank, million,$
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