Question
23) Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C
23) Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom .15 .30 .40 .31 Good .55 .17 .11 .10 Poor .25 .03 .06 .04 Bust .05 .10 .26 .07 Your portfolio is invested 26 percent each in A and C, and 48 percent in B. What is the expected return of the portfolio?
What is the variance of this portfolio?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N. Hyman
5th Edition
0030113172, 978-0030113178
