Question
Returns and variances Consider the following information Rate of Return If State Occurs State of Economy Probability of States Economy Stock A Stock B Stock
Returns and variances Consider the following information Rate of Return If State Occurs
State of Economy Probability of States Economy Stock A Stock B Stock C
BOOM .35 .07 .15 .33
BUST .65 .13 .03 -.06
A. What is the expected return on an equally weighted portfolio of these three stocks?
B. What is the variance of a portfolio investewd 20 percent each in A and B and 60 percent in C?
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The Handbook Of Mergers And Acquisitions
Authors: David Faulkner, Satu Teerikangas, Richard J. Joseph
1st Edition
0199601461, 978-0199601462
