Suppose there are only three risky assets, IAM stock, IBM stock, and ICM stock. The total market equity values of these companies at current prices are $150 million for IAM, $300 million for IBM, and $1,500 million for ICM. In addition there is $50 million of riskless bonds in the market. The proportion of the riskless asset held in the aggregate market portfolio would be?
Click here for the solution: Suppose there are only three risky assets, IAM stock, IBM stock, and ICM stock
