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Stock AAA will have a return of 0% and a boom and 15% in a bust. stock ZZZ well have a return of 24% and
Stock AAA will have a return of 0% and a boom and 15% in a bust. stock ZZZ well have a return of 24% and a boom and -12% in a bust. The odds of a boom are 2/3 and odds of a bust are 1/3, giving stock AAA an expected return of 5% and stock ZZZ an expected return of 12%. you put 51% of your overall investment in AAA and the remainder of your money in ZZZ. what is the expected return on your portfolio?
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