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Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom
Consider the following information: |
Rate of Return if State Occurs | ||||
State of Economy | Probability of State of Economy | Stock A | Stock B | Stock C |
Boom | .15 | .38 | .48 | .28 |
Good | .45 | .22 | .19 | .15 |
Poor | .30 | .04 | .09 | .06 |
Bust | .10 | .16 | .34 | .11 |
Your portfolio is invested 24 percent each in A and C, and 52 percent in B. What is the expected return of the portfolio?????
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