Q8. Company A owns 40% of Company B Company B owns 30% of Company C Company C owns 20% of Company A Each company has a total market capitalization of $200 million. You wish to adjust for cross-holding to reflect the weights of these companies in a market weighted index. What adjustment would you make to reflect the free float? Q9. Basil Richards follows an active international asset allocation strategy and observes the following data. The average execution cost for a buy or a sell order is forecasted at 0.75 percent. The portfolio has a turnover ratio of 1.2 times a year. The annual expected return before transaction costs is 11%. What is the annual expected return net of execution costs? Q10. Question: Firm A has a 17 percent market share, Firm B has a 20 percent market share and Firm C has a 65 percent market share. Calculate the Herfindahl index value. What does the reciprocal of the Herfindahl index show? Q11 (5' bonus) Please write down the topic of Lee Li Lin's topic in class presentation