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4. Calculate the expected return on the portfolio that has invested 30% is stock A, 40% in stock B; and 30% in stock C. Rate
4. Calculate the expected return on the portfolio that has invested 30% is stock A, 40% in stock B; and 30% in stock C. Rate of Return in each State State of Economy Probability
| Rate of Return in each State | ||||
| State of Economy | Probability | Stock A (%) | Stock B (%) | Stock C (%) |
| Boom | 4% | 18.4 | 11.4 | 26.1 |
| Normal | 93% | 9.6 | 7.9 | 17.6 |
| Recession | 3% | 3.8 | 4.6 | -28.7 |
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Personal Finance
Authors: Megan Noel, Dan French
2nd Edition
1465246479, 9781465246479
