Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. At the same time, suppose you are holding a market portfolio and have invested $42,000 in Stock C. Stock Price/ Share ($) Number of Shares Outstanding (millions) A 7 15 B 14 14 C 6 4 D 24 2 E 87 19 Please round your answers to two decimals. a) What does the market portfolio consist of (what are the portfolio weights)? (5 marks) b) How much have you invested in Stock A? (5 marks) c) How many shares of Stock B do you hold? (5 marks) d) If the price of Stock C suddenly drops to $5 per share, what trades would you need to make to maintain a market portfolio? (5 marks | 100 words)

Suppose all possible investment opportunities in the world are limited to the five stocks listed in the table below. At the same time, suppose you are holding a market portfolio and have invested $42,000 in Stock C. Stock Price/ Share ($) Number of Shares Outstanding (millions) A 7 15 B 14 14 6 4 D 24 2 E 87 19 Please round your answers to two decimals. a) What does the market portfolio consist of (what are the portfolio weights)? (5 marks) b) How much have you invested in Stock A? (5 marks) c) How many shares of Stock B do you hold? (5 marks) d) If the price of Stock C suddenly drops to $5 per share, what trades would you need to make to maintain a market portfolio? (5 marks | 100 words)