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Here are the data to use for this question, Probability Stock X Return Stock Y Return Good economy .80 20% 40% Bad economy .20 -10%
Here are the data to use for this question,
Probability Stock X Return Stock Y Return
Good economy .80 20% 40%
Bad economy .20 -10% -40%
What is the expected return on a portfolio of 25% in X and 75% in Y?
a) | 21.5% | |
b) | 38% | |
c) | 19% | |
d) | 10% |
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