Consider the following information: a. What is the expected return on an equally weighted portfolio of these
Question:
Consider the following information:
a. What is the expected return on an equally weighted portfolio of these three stocks?
b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
Transcribed Image Text:
State of Economy Boom Bust Probability of State of Economy .75 .25 Rate of Retur if State Occurs Stock A Stock B Stock C .07 .12 .18 -.08 .27 -.21
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a To find the expected return of the portfolio we need to find the return of the portfolio in each s...View the full answer
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Related Book For
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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