Question
Scenario analysis for Stocks X and Y: Bear Market Normal Market Bull Market Probability 0.2 0.5 0.3 Stock X 20% 18% 50% Stock Y 15%
Scenario analysis for Stocks X and Y:
|
| Bear Market | Normal Market | Bull Market |
| Probability | 0.2 | 0.5 | 0.3 |
| Stock X | 20% | 18% | 50% |
| Stock Y | 15% | 20% | 10% |
Assume that of your $10,000 portfolio, you invest $9,000 in Stock X and $1,000 in Stock Y. What is the expected return on your portfolio?
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Numerical Techniques In Finance
Authors: Simon Benninga
1st Edition
0262022869, 978-0262022866
