Question
Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities .2,.6,.2) are 18, 14,
Assume that the % expected return for security A and the market M for a good, normal and bad economy (probabilities .2,.6,.2) are 18, 14, and 8 for A and 16, 22, and 12 for M. Also assume that you invest 70% in A and 30% in M. Compute the expected return for the portfolio.
Group of answer choices
13.6
18.8
5.92
15.16
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
11th edition
9781259278617, 77861647, 1259278611, 978-0077861643
