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Time left 0 : 5 5 : 1 3 ABC Investment Corporation is considering a portfolio with 3 0 % weighting in a cyclical stock
Time left :: ABC Investment Corporation is considering a portfolio with weighting in a cyclical stock and weighting in a countercyclical stock. It is expected that there will be three economic states; Good, Average and Bad, each with equal probabilities of occurrence. The cyclical stock is expected to have returns of and in Good, Average and Bad economies respectively. The countercyclical stock is expected to have returns of and in Good, Average and Bad economies respectively. Given this information, calculate the portfolio expected return. a b c d e CLEAR MY CHOICE
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ABC Investment Corporation is considering a portfolio with weighting in a cyclical stock and weighting in a countercyclical stock. It is expected that there will be three economic states; Good, Average and Bad, each with equal probabilities of occurrence. The cyclical stock is expected to have returns of and in Good, Average and Bad economies respectively. The countercyclical stock is expected to have returns of and in Good, Average and Bad economies respectively. Given this information, calculate the portfolio expected return.
a
b
c
d
e
CLEAR MY CHOICE
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