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Total Number of Shares Outstanding Current Price per Share Expected Return First Bank 84 98 22% Fast Mover 44 105 11% Funny Bone 219 25

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Total Number of Shares Outstanding Current Price per Share Expected Return
First Bank 84 98 22%
Fast Mover 44 105 11%
Funny Bone 219 25 18%
Consider a world that only consists of the three stocks shown in the following table: BB 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

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