Question
Consider the following distribution of returns: Probability R A R B R C 30% -20% -5% 5% 40% 5% 10% 3% 30% 40% 15% 2%
Consider the following distribution of returns:
| Probability | RA | RB | RC |
| 30% | -20% | -5% | 5% |
| 40% | 5% | 10% | 3% |
| 30% | 40% | 15% | 2% |
Find the expected return of a portfolio with 60% in A and 40% in B. Round off your final answer to two digits after the decimal point. State your answer as a percentage rate (such as 5.55) (Hint: Your answers to previous questions may be useful.)
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Mission Ready Finances Proven Principles To Guide Your Story To Financial Freedom
Authors: Marco Parzych
1st Edition
173321531X, 978-1733215312
