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Given the following information about the returns of stocks A, B, and C, what is the expected return of a portfolio invested 30% in stock
Given the following information about the returns of stocks A, B, and C, what is the expected return of a portfolio invested 30% in stock A, 40% in stock B, and 30% in stock C?
State of economy | Probability | Stock A | Stock B | Stock C |
---|---|---|---|---|
Boom | 0.19 | 0.3 | 0.33 | 0.27 |
Good | 0.27 | 0.12 | 0.25 | 0.15 |
Poor | 0.29 | 0.03 | 0.04 | 0.09 |
Bust | -- | -0.27 | -0.22 | -0.22 |
Enter answer in percents.
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