Question
In a very small market, shares are traded in three companies, Bolaget AB, Smfretaget AB and Storfretaget AB. Bolaget AB has an expected return of
In a very small market, shares are traded in three companies, Bolaget AB, Smfretaget AB and Storfretaget AB. Bolaget AB has an expected return of 8.40% and makes up 53% of the market portfolio, Smfretaget AB has an expected return of 6.30% and makes up 22% of the market portfolio and Storfretaget AB has an expected return of 11.09% and makes up 25 % of the market portfolio. Calculate the market portfolio's expected return. Enter your answer in percentages and round to 2 decimal places, e.g. if you have calculated a percentage return of 18.1211% then answer 18.12.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started