Use the table for the question(s)below.
Consider the following expected returns, volatilities and correlations:

-A share market comprises 1 000 shares of company A and 3 000 shares of company B. The share prices for companies A and B are $25 and $30, respectively. What is the capitalisation of the market portfolio?

Question

Use the table for the question(s)below.
Consider the following expected returns, volatilities and correlations:
 
-A share market comprises 1 000 shares of company A and 3 000 shares of company B. The share prices for companies A and B are $25 and $30, respectively. What is the capitalisation of the market portfolio?

Quizplus · Accepted Answer

The capitalization of the market portfolio can be calculated by multiplying the total number of shares by their respective prices and then adding these values together. 
Total market value = (1,000 shares x $25/share) + (3,000 shares x $30/share) = $25,000 + $90,000 = $115,000. 
Therefore, the correct answer is B.

Use the Table for the Question(s)below