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1 Portfolio Return: Return of ABC Return of DEF Return of GHI Portfolio Return State of the Economy Boom Steady Recession Probability of Economic State
1 Portfolio Return: Return of ABC Return of DEF Return of GHI Portfolio Return State of the Economy Boom Steady Recession Probability of Economic State 0.15 0.65 0.20 16.0% 8.0% -3.0% 10.0% 6.0% -4.0% 25.0% 14.0% -2.0% Expected Return: * The portfolio return for each economic state is a weighted average of the returns of each stock, weighted by the % of the portfolio each represents
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