Question
A portfolio consists of 21 percent Stock A, 51 percent Stock B, and 28 percent Stock C. What is the portfolio expected return given the
| A portfolio consists of 21 percent Stock A, 51 percent Stock B, and 28 percent Stock C. What is the portfolio expected return given the following: |
| State of Economy | Probability of State of Economy | Stock A Returns | Stock B Returns | Stock C Returns |
| Normal | .60 | 13% | 6% | 20% |
| Recession | .40 | 2 | 13 | 24
|
a.2.93 percent
b.7.16 percent
c.5.24 percent
d.6.63 percent
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Financial Modeling An Introductory Guide To Excel And VBA Applications In Finance
Authors: Joachim Häcker, Dietmar Ernst
1st Edition
1137426578, 978-1137426574
