Suppose the market consists only of Merck (MRK) and Boeing (BA). Merck stock is trading for...
Suppose the market consists only of Merck (MRK) and Boeing (BA). Merck stock is trading for $36.70 per share with 2.11 billion shares outstanding while Boeing has 697.5 million shares outstanding and a market capitalization of $38.223 billion. Assume that you hold the market portfolio.
Boeing's stock price is closest to:
Homework Answers
Boeing's stock price = Market capitalization of Boeing / No. of shares of Boeing
Market capitalization of Boeing = 38,223,000,000
No. of shares = 697,500,000
So, Stock price = 38,223,000,000 / 697,500,000
= $54.80
Boeing's stock price is closet to $54.80.
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