Let's solve the problem **step by step**: --- ## **Step 1: Find the Market Value of Walt Disney Stock** We need to know the total market cap of Walt Disney. We know: - Number of Walt Disney shares: **2.44 billion** - But we don’t know the price per share yet. --- ## **Step 2: Find the Proportion of Best Buy in Market Portfolio** We know: - Best Buy's market cap = **$17 billion** - Walt Disney's market cap = unknown (let's call it \( x \)) If you hold the market portfolio, the ratio of the number of shares you hold in each company should be **proportional to their market weights**. --- ## **Step 3: Calculate the Dollar Value of Market Portfolio Represented by 119 Shares of Best Buy** - Best Buy's price per share = **$90** - Number of Best Buy shares held = **119** So, \[ \text{Dollar value in Best Buy} = 119 \times 90 = \$10,710 \] --- ## **Step 4: Find the Market Value Proportion** The fraction of the market portfolio in Best Buy: \[ \text{Fraction in Best Buy} = \frac{\text{Best Buy Market Cap}}{\text{Total Market Cap}} \] But we don’t know the total market cap. Let’s denote: - Best Buy market cap = **$17 billion** - Walt Disney market cap = \( 2.44 \text{ billion} \times P_{DIS} \) - Total market cap = $17B + \text{Disney market cap}$ But, for the purpose of this problem, we only need the **relative dollar values**. --- ## **Step 5: Proportion of Investment** If you have $10,710 in Best Buy, you must have a proportionate value in Disney, according to their market cap weights. Let’s call: - Dollar value in Disney = \( x \) \[ \frac{10,710}{17,000,000,000} = \frac{x}{2.44 \times 10^9 \times P_{DIS}} \] --- ## **Step 6: Express Dollar Value in Disney** \[ x = 10,710 \times \frac{2.44 \times 10^9 \times P_{DIS}}{17,000,000,000} \] \[ x = 10,710 \times \frac{2.44 \times P_{DIS}}{17} \] --- ## **Step 7: Number of Disney Shares** \[ \text{Number of Disney shares} = \frac{x}{P_{DIS}} \] Plug in the value of \( x \): \[ \text{Number of Disney shares} = \frac{10,710 \times \frac{2.44 \times P_{DIS}}{17}}{P_{DIS}} \] \[ = \frac{10,710 \times 2.44}{17} \] --- ## **Step 8: Calculate the Final Number** \[ = \frac{10,710 \times 2.44}{17} = \frac{26,972.4}{17} \approx 1,587 \] --- ## **Final Answer** \[ \boxed{1,587} \] **If you hold 119 shares of Best Buy in the market portfolio, you would hold approximately 1,587 shares of Walt Disney.** --- ### **Summary Table** | Company | Shares Held | Calculation | |-------------|-------------|------------------------------| | Best Buy | 119 | Given | | Walt Disney | 1,587 | \( \frac{10,710 \times 2.44}{17} \) | --- If you need any step clarified, let me know!