P11-3 (similar to) Question Help 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? Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Total Number Stock of Shares Outstanding Current Price per Share First Bank 91 million $92 Fast Mover 52 million $115 Furmy Bone 229 million $29 Expected Return 22% 12% 16% Print Done P11-8 (similar to) Using the data in the following table, what is the covariance between the stocks of Microsoft and Kellogg? The covariance between the stocks of Microsoft and Kellogg is (Round to three decimal places.) 0 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Historical Annual Volatilities and Correlations for Selected Stocks (based on monthly returns, 1996-2017) Alaska Southwest Ford General Microsoft HP Air Airlines Motor Kellogg Mills Volatility (Standard Deviation) 0.32 0.36 0.36 0.31 0.47 0.19 0.17 Correlation with Microsoft 1.00 0.40 0.18 0.22 0.27 0.04 0.10 HP 0.40 1.00 0.27 0.34 0.27 0.10 0.06 Alaska Air 0.18 0.27 1.00 0.40 0.15 0.15 Southwest Airlines 0.20 0.22 0.34 0.40 1.00 0.30 0.15 Ford Motor 0.21 0.27 0.27 0.15 0.30 1.00 0.17 0.08 Kellogg 0.04 0.10 0.15 0.15 0.17 0.55 General Mills 0.10 0.06 0.20 0.21 0.08 0.55 1.00 1.00 P10-33 (similar to) Suppose the market portfolio is equally likely to increase by 33% or decrease by 13% a. Calculate the beta of a firm that goes up on average by 31% when the market goes up and goes down by 30% when the market goes down. b. Calculate the beta of a firm that goes up on average by 21% when the market goes down and goes down by 6% when the market goes up. c. Calculate the beta of a firm that is expected to go up 4% independently of the market. a. Calculate the beta of a firm that goes up on average by 31% when the market goes up and goes down by 30% when the market goes down. The beta is (Round to two decimal places)