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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 | 0.36 | 0.24 | 0.37 |
Good | 0.22 | 0.21 | 0.12 | 0.24 |
Poor | 0.28 | 0.06 | 0 | 0.02 |
Bust | -- | -0.1 | -0.27 | -0.25 |
Answer must be in percents!
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