Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 10.00% and constitutes 80% of the market portfolio, Smfretaget AB has an expected return of 8.60% and constitutes 10% of the market portfolio and Storfretaget AB has an expected return of 14.10% and constitutes 10 % of the market portfolio. Calculate the return on the market portfolio. Round your answer to 2 decimal places e.g. if you have calculated a percentage return of 18.1211% of the answer then 18.12

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Business

Authors: Michael Geringer, Jeanne M. McNett, Michael S Minor, Donald A Ball

1st edition

78029376, 78029370, 1259317226, 978-1259317224

More Books

Students also viewed these Economics questions