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(CHAPTER 13) Your two favorite companies are Pirefox and Twitter, You feel like every year in the future will be randomlyether a thumbs up year
(CHAPTER 13) Your two favorite companies are Pirefox and Twitter, You feel like every year in the future will be randomlyether a thumbs up" year or a thumbs down year, which will decermine how high the annual return on your stock investment into each of these companies' stock will be as shown in the table below Firefox Twit State Probability of the of the state economy of the economy NON "Thumbs "Thumbs dow Return. Return Return 20 uur 10 70% (a) The Expected turn for Twittees stocks In the expected Return of a portfolio with 40 invested into Trefox stock and to invested into Twitter stock equals (CHAPTER 13) Your two favorite companies are Firefox and Twitter. You feel like every year in the future will be randomly eit! on your stock investment into each of these companies stock will be, as shown in the table below: Firefox Twitter State of the economy Probability of the state of the economy 30% "Thumbs up" "Thumbs down" Return=25% Return=15% Return=20% Return=10% 70% (a) The Expected Return for Twitter's stock equal (b) The expected Return of a portfolio with 40% 60% invested into Twitter stock equ Twitter E[R] - 11.50% Twitter E[R] = 12.00% Twitter E[R] 13.00% Twitter E[R] 18.00% Twitter E(R) - 18.50% Portfolio E[R] = 15.00% Portfolio E[R] = 15.50% Portfolio E[R] - 16.00% Portfolio E[R] - 16.90% Portfolio E[R] = 17.40% Moving to another question will save this re: -25% Return-15% 20% Returns 10% equals Ch 40% invested into Firefox stock and 60% Invested into Twitter stock equal Twitter E[R] = 11.50% Twitter E[R] = 12.00% Twitter E[R] = 13.00% Twitter E[R] = 18.00% Twitter E[R] = 18.50% Portfolio E[R] = 15.00% Portfolio E[R] 15.50% Portfolio E[R] 16.00% Portfolio E[R] 16.90% Portfolio E[R] - 17.40% We this response
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