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Question 7 Consider the following information on two stocks: Stock A Stock B P(State) 10% 25% -5% 15% -5% 10% 25% 8% 10% -5% 5%
Question 7 Consider the following information on two stocks: Stock A Stock B P(State) 10% 25% -5% 15% -5% 10% 25% 8% 10% -5% 5% Boom Growth 20% Normal 30% Slow 20% Bust 20% 0 out of 5 points Suppose you invest $30,000 into stock A, and $40,000 into stock B. Calculate the weight of A in the portfolio. (Enter percentages as decimals and round to 4 decimals)
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