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Consider the following information: Rate of Return if State Occurs State ofEconomy Probability of State ofEconomy Stock A Stock B Stock C Boom 0.65 0.07
- Consider the following information:
Rate of Return if State Occurs
State ofEconomy
Probability of State ofEconomy
Stock A
Stock B
Stock C
Boom
0.65
0.07
0.15
0.33
Bust
0.35
0.13
0.03
0.06
- What is the expected return on an equally weighted portfolio of these three stocks?
- What is the variance of a portfolio invested 20% each in A and B and 60% in C?
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Accounting Best Practices
Authors: Steven M Bragg
7th Edition
1118404149, 9781118404140
