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State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom .75 .06 .15 .25
State of Economy | Probability of State of Economy | Rate of Return If State Occurs | ||
---|---|---|---|---|
Stock A | Stock B | Stock C | ||
Boom | .75 | .06 | .15 | .25 |
Bust | .25 | .11 | .04 | .08 |
What is the expected return on an equally weighted portfolio of these three stocks?
What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
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