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(CHAPTER 13) Your two favorite companies are Firefox and Twitter. You feel like every year in the future will be randomly either a thumbs up
(CHAPTER 13) Your two favorite companies are Firefox and Twitter. You feel like every year in the future will be randomly either a "thumbs up" year or a "thumbs down" year, which will determine how high the annual return on your stock investment into each of these companies' stock will be, as shown in the table below: Firefox Twitter State of the economy Probability of the state of the economy "Thumbs up 40% Return-25% Return-15% Return-20% Return-10% "Thumbs down" 6096 (a) The Expected Return for Twitter's stock equals (b) The Expected Return of a portfolio with 30% invested into Firefox stock and 70% invested into Twitter slock equals (CHAPTER 13) Your two favorite companies are Firefox and Twitter. You feel like every year in the future will be randomly either a "thumbs up" year or a "thumbs down" year, which will determine how high the annual return on your stock investment into each of these companies' stock will be, as shown in the table below: Firefox Twitter State of the economy Probability of the state of the economy "Thumbs up 40% Return-25% Return-15% Return-20% Return-10% "Thumbs down" 6096 (a) The Expected Return for Twitter's stock equals (b) The Expected Return of a portfolio with 30% invested into Firefox stock and 70% invested into Twitter slock equals
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