Question
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 0.12 0.33 0.21 0.38
Good 0.23 0.17 0.29 0.23
Poor 0.25 0.09 0.05 0.02
Bust -- -0.25 -0.11 -0.15
Enter answer in percents.
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
