1. 

   Bernadette Pieterse Active Member

   Hello,
   
   For part (i) of question 8, why can’t we calculate the expected return of the market portfolio by using the table given in the question and using market cap as weights?
   
   E_m = (20/60)*3.5 + (30/60)*2.2 + (10/60)*4.4 = 3%
   
   Thanks!

    

   Bernadette Pieterse, Dec 11, 2023

   #1
2. 

   Steve Hales ActEd Tutor Staff Member

   We can - that's how I would solve it.

    

   Steve Hales, Dec 12, 2023

   #2
3. 

   Bernadette Pieterse Active Member

   Thank you!

    

   Bernadette Pieterse, Dec 18, 2023

   #3

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