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Other Fields Homework Help Finance Topic started by: johnpaech on Nov 20, 2017



Title: Suppose that you are holding a market portfolio and you have invested $9000 in Rearden Metal. The ...
Post by: johnpaech on Nov 20, 2017
Suppose that you are holding a market portfolio and you have invested $9000 in Rearden Metal.  The amount that you have invested in Nielson Motors is closest to:
A) $6000
B) $7715
C) $9000
D) $10,500


Title: Re: Suppose that you are holding a market portfolio and you have invested $9000 in Rearden Metal. ...
Post by: deusmaroto on Nov 20, 2017
D
Explanation:  D) 
Calculations          B × C    D/1950
Stock   Price per
Share   Number of Shares
Outstanding
(Millions)   Market
Cap   Weight
Taggart Transcontinental   $15.60   25   $390.00   0.2
Rearden Metal   $13.00   45   $585.00   0.3
Wyatt Oil   $29.25   10   $292.50   0.15
Nielson Motors   $26.25   26   $682.50   0.35
Total         $1950.00   

AmountNielson =   × AmountRearden =   × $9000 = $10,500


Title: Re: Suppose that you are holding a market portfolio and you have invested $9000 in Rearden Metal. The ...
Post by: johnpaech on Aug 1, 2018
You took a load off my back, thanks for answering correctly