Question
A portfolio consists of 30 percent Stock A, 60 percent Stock B, and 10 percent Stock C. What is the portfolio expected return given the
| A portfolio consists of 30 percent Stock A, 60 percent Stock B, and 10 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 | 0.60 | 22% | 15% | 38% |
| Recession | 0.40 | 2 | 31 | 24 |
18.41 percent
14.18 percent
17.88 percent
16.49 percent
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Emerging Markets And The Global Economy A Handbook
Authors: Mohammed El Hedi Arouri, Sabri Boubaker, Duc Khuong Nguyen
1st Edition
0124115497, 978-0124115491
