In a very small market, shares are traded in three companies, Bolaget AB, Smfretaget AB and Storfretaget

In a very small market, shares are traded in three companies, Bolaget AB, Småföretaget AB and Storföretaget AB. Bolaget AB has an expected return of 8.40% and constitutes 53% of the market portfolio, Småföretaget AB has an expected return of 6.30% and constitutes 22% of the market portfolio and Storföretaget AB has an expected return of 11.09% and constitutes 25 % of the market portfolio.

Calculate the market return's expected return?

Answer rating: 100% (QA)

To calculate the market portfolios expected return we need to calculate the we... View the full answer