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 30% is invested in ABC. Please answer as a decimal to 4 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
How To Read A Financial Report Wringing Vital Signs Out Of The Numbers
Authors: John A. Tracy , Tage C. Tracy
9th Edition
1119606462,1119606489
