Total value of all shares outstanding

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Consider a world that only consists of the three stocks shown in the following? table:

Stock

Total Number

of Shares Outstanding

Current Price per Share

Expected Return

First Bank

116 million

?$105

15?%

Fast Mover

48 million

?$124

10?%

Funny Bone

163 million

?$35

12?%

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?    (Round to the nearest? integer.)

Reference no: EM133059827

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