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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 | 0.14 | 0.31 | 0.39 | 0.32 |
Good | 0.25 | 0.19 | 0.13 | 0.16 |
Poor | 0.29 | 0.08 | 0.06 | 0 |
Bust | -- | -0.22 | -0.22 | -0.2 |
Enter answer in percents.
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