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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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The Operational Auditing Handbook Auditing Business And IT Processes
Authors: Andrew Chambers, Graham Rand
2nd Edition
0470744766, 978-0470744765
