A stock market comprises 2400 shares of stock a and 2400 shares of stock b. the share prices for stocks a and b are $15 and $5, respectively. what is the capitalization of the market portfolio?

Question

02-08-2022
Business

Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Our Q&A platform offers a seamless experience for finding reliable answers from experts in various disciplines. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

A stock market comprises 2400 shares of stock a and 2400 shares of stock b. the share prices for stocks a and b are $15 and $5, respectively. what is the capitalization of the market portfolio?

Sagot :

We appreciate your time. Please come back anytime for the latest information and answers to your questions. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.

Which terms best describe Kublai Khan? A. conqueror and builder B. spiritualist and priest C. astronomer and mathematician D. teacher and poet

Sheryl is observing ovarian slides taken from a female ape. All the cells show crossover chromosomes. What is this stage? meiotic prophase I meiotic prophase II

PLEASE HELP!!! Store A: $25 for 45 minutes Store B: $30 for 1 hour Store C: $45 for 1.5 hours Store D: $80 for three 1 hour lessons Julie needs to have swim les

Select the best analogy. 21. vociferous : reticent :: A. courageous : bold B. sharp : edge C. provocative : dull D. speculate : repartee i think C am i right

There are 10 marbles in a bag. Tyrell draws one marble out at a time without looking and replaces it in the bag. Tyrell did this 100 times. Tyrell drew red marb

describe two alternate ways a farmer might have shipped a cargo of grain from Cleveland ohio to new York city

Which was NOT an economic or political cause of World War II? Japan's imperialist intentions in China and Southeast Asia Depression, inflation, and high unemplo

What were the reasons the United States and Soviet Union could not agree on a workable postwar relationship?

Need help! Which US president encouraged the United States to practice isolationism?

Lead has a density of 11.3 g/cm3 and a mass of 282.5 g. What is its volume? a. 2.5 cm3 c. 250 cm3 b. 25 cm3 d. 2500 cm3

sakshigupta4990 sakshigupta4990 · Answer 1 · 2022-08-09T14:24:56-04:00

$48000 is the capitalization of the market portfolio.

Option B. $48000.

Capitalization of market portfolio=(Number of shares of each type of stock*Price per share)

=(2400*!5)+(2400*5)

=$48000.

A market portfolio is a theoretical bundle of investments containing all types of assets available in the investment universe, with each asset weighted proportionally to its overall market presence. The expected return of the market portfolio is the same as the expected return of the market as a whole.

The market portfolio is an efficient portfolio. Its allocation provides a single optimal mix of risk assets. 2. The expected return of each asset follows a simple linear relationship with the expected return of the market portfolio.

At CAPM, the market portfolio has the highest possible Sharpe ratio, making it the best investment.