Question
Gama Investment Ltd has a growth portfolio consisting of an equally weighted holding of four shares. If the economy is experiencing boom conditions which is
Gama Investment Ltd has a growth portfolio consisting of an equally weighted holding of four shares. If the economy is experiencing boom conditions which is 59% of the time, the balance will be bust conditions. If the shares are expected to return the following returns (in decimals) for each state of the economy. What is the expected return of Gama Investment Ltd.s growth portfolio? (enter your answer as 0.xxxx for the percentage to four decimal places) State of Economy Share A Share B Share C Share D Boom 0.279 0.387 0.23 0.226 Bust -0.048 -0.21 0.019 -0.005
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