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With the unexpected success of Marc's Ferrari Driving Company (MFDC), competitors are starting to emerge. The latest is David's Kia Driving Company (DKDC). Personally, I

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With the unexpected success of Marc's Ferrari Driving Company (MFDC), competitors are starting to emerge. The latest is David's Kia Driving Company (DKDC). Personally, I think he's missed the entire points of the business... You've studied the industry carefully, and feel confident that the information in the following table describes the expected performance of each of these firms. Company MFDC DKDC Expected Annual Return 14.6% 8.2% Risk for the annual returns 9.3% 7.0% Beta 1.7 0.2 Current Stock Price $18.36 $21.02 You've also learned that the correlation between MFDC and DKDC is 0.43%. You will purchase 725 shares of MFDC and 275 shares of DKDC to construct your portfolio What is the weight of MFDC in your portfolio? (answer using a percentage rounded to two decimal places, for example, if your answer is 5.678% you should enter 5.68)

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