Question: Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.09 0.04 0.03 Bust 0.35 -0.15 0.22 -0.03 What is the
Consider the following information:
State Probability Stock A Stock B Stock C
Boom 0.65 0.09 0.04 0.03
Bust 0.35 -0.15 0.22 -0.03
What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals (e.g. 0.1234).
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