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What percentage of the portfolio of investor

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Reference no: EM133002416

Question - This is one of the key results of the Capital Asset Pricing Model (CAPM). Suppose that the Johannesburg Stock exchange (JSE) is a market of risky assets, which consists only of all JSE listed companies. Suppose that the JSE has only 12 million investors. Assume that investor 1 has 5% of their portfolio of risky assets in Zebra Ltd shares. (Assume Zebra Ltd is a company listed on the JSE).

Required -

I. What percentage of the portfolio of investor 9 is invested in Zebra Ltd.'s shares?

II. What percentage of the market portfolio is invested in Zebra Ltd's shares?

III. What percentage of the JSE market capitalization is in Zebra Ltd's shares?

IV. What constitutes investor 37's portfolio of risky assets?

V. In what proportions should every investor in the scenario hold shares on the JSE?

Reference no: EM133002416

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