Question
Consider the following two stocks. Probabilities (pi) Stock A Stock B Recession p1=27% -9% 7% Normal p2=37% 4% -13% Boom p3=36% 20% 29% The portfolio
Consider the following two stocks.
| Probabilities (pi) | Stock "A" | Stock "B" | |
| Recession | p1=27% | -9% | 7% |
| Normal | p2=37% | 4% | -13% |
| Boom | p3=36% | 20% | 29% |
The portfolio weights for stocks "A" and "B" are 0.3 and 0.7, respectively.
What are the expected returns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your answers. Round your answers to 2 DECIMAL PLACES.
E(ra)=
E(rb)=
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The Future Of Real Estate Early Warning Realtors
Authors: Anya Bartholomew
1st Edition
1975711149, 978-1975711146
