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The following is the distribution of market portfolios and the probability of return on individual asset A according to market conditions after one year. Market
The following is the distribution of market portfolios and the probability of return on individual asset A according to market conditions after one year.
Market conditions (probability of occurrence) : | recession(0.2) | usually (0.5) | Booming (0.3) |
Market Portfolio | -20% | 10% | 40% |
A | -50% | 10% | 70% |
1)What is the expected return and variance of the market portfolio?In turn, answer up to the second decimal place in % units. 2)What if you get a beta value for the market of A stock?
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