Question
Do not do any interim rounding, calculate values to at least 6 decimal places before converting to a percentage, state answers as a percentage to
Do not do any interim rounding, calculate values to at least 6 decimal places before converting to a percentage, state answers as a percentage to 2 decimal places, do not include labels (%, $). For example, .06487 should be input as 6.49
Consider the following information about expected returns for two securities, Ravenwood Consulting and Brody Enterprises.
| Probability | Ravenwood | Brody | |
| Boom | 35% | 14.5% | 4% |
| Neutral | 45% | 7.8% | 6.5% |
| Bust | 20% | -9% | 7% |
The expected return for a portfolio invested 70% in Ravenwood and 30% in Brody is:
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
