Question
State of Economy Probability ABC Company Expected Return XYZ Company Expected Return Very Poor 0.1 -15% -9% Poor 0.1 -8% -8% Good 0.1 14% 14%
| State of Economy | Probability | ABC Company Expected Return | XYZ Company Expected Return |
| Very Poor | 0.1 | -15% | -9% |
| Poor | 0.1 | -8% | -8% |
| Good | 0.1 | 14% | 14% |
| Very Good | 0.7 | 34% | 23% |
| Expected Return |
| 22.9% | 15.8% |
Calculate the expected return of the portfolio if 40% is invested in XYZ. 4 Decimal points
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Competitor Analysis In Financial Services
Authors: Ian Youngman
1st Edition
1855733315,1782420053
