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Number Shares Outstand Current Prince Per Share Expected Return First Bank 8 2 million $ 8 8 2 2 % Fast Mover 5 0 million
Number Shares Outstand Current Prince Per Share Expected Return
First Bank million $
Fast Mover million $
Funny Bone million $
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.
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 isRound to two decimal places.
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