A stock market comprises 5000 shares of stock A and 2000 shares of stock B.Assume the share prices for stocks A and B are $20 and $35,respectively.What is the capitalization of the market portfolio?

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The capitalization of the market portfolio is the total value of all the shares in the market. In this case, the capitalization of the market portfolio is:5000 shares of stock A * $20 per share = $100,0002000 shares of stock B * $35 per share = $70,000Total capitalization = $100,000 + $70,000 = $170,000

A Stock Market Comprises 5000 Shares of Stock a and 2000