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State of Economy. Probability of State of Economy. Stock A. Stock B. Stock C Boom .60 .18 .04 .31 Bust .40 .03 .16 -.11 a.)
State of Economy. Probability of State of Economy. Stock A. Stock B. Stock C
Boom .60 .18 .04 .31
Bust .40 .03 .16 -.11
a.) What is the expected return on an equally weighted portfolio of these three stocks?
b.) What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
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