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Question 10 Suppose the risk-free rate is 3% and there are three risky securities with prices, expected returns, and capitalization in the market as given
Question 10 Suppose the risk-free rate is 3% and there are three risky securities with prices, expected returns, and capitalization in the market as given in the table below: Stock Shares Price E(r) 500 $50 0.08 B 200 $80 0.05 800 $45 0.10 A. What is the total capitalization of the market? B. What are the weights of the three assets in the market portfolio? C. What is the expected return on the market portfolio
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