\begin{tabular}{lcccc} & Nr of shares & Price & Expected return & standard deviation \\ \hline A & 100 & 4 & 8 & 10 \\ B & 300 & 6 & 12 & 14 \\ C & 100 & 5 & 10 & 12 \\ \hline \end{tabular}
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Total value of the market = (100 * 4) + (300 * 6) + (100 * 5) = 400 + 1800 + 500 = 2700 Weights of each asset: Weight of A = (100 * 4) / 2700 = 0.1481 Weight of B = (300 * 6) / 2700 = 0.6667 Weight of C = (100 * 5) / 2700 = 0.1852 Now, we can calculate the Show more…
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