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Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. What does the market portfolio consist
Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. What does the market portfolio consist of? | ||||||
Shares | ||||||
Price/Share | Outstanding | |||||
Stock | ($) | (millions) | ||||
A | 10 | 10 | ||||
B | 20 | 12 | ||||
C | 8 | 3 | ||||
D | 50 | 1 | ||||
E | 45 | 20 | ||||
Market value | Share of | |||||
(million) | Market portfolio | |||||
Stock A | ||||||
Stock B | ||||||
Stock C | ||||||
Stock D | ||||||
Stock E | ||||||
Total |
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