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18. Expected return of a portfolio Suppose that in one year only three possible outcomes can take place. In each one of those possible scenarios
18. Expected return of a portfolio Suppose that in one year only three possible outcomes can take place. In each one of those possible scenarios the return of the stock of the companies Spin and Bang will take the following values with the indicated probabilities: Probabilities Spin Bang 0.1 0.09 0.15 0.2 -0.03 0.10 0.7 0.37 0.27 Suppose that you would like to invest in a portfolio of the two and your investment wealth is equal to 100,000 SEK. You would like to allocate 25,000 SEK to Spin and the rest will be invested in Bang. What will be the expected return of your portfolio? (Answers rounded to two decimal digits) Utskrivet: 2022-03-01 11:55 14 O a) 25.25% O b) 0.00% O c) 13.10% O d) 23.35% e) 36.45% O f) None of the other alternatives is correct
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