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What is the expected return (expressed in %) of a portfolio that has $7500 in Stock M and $5000 in Stock N? Assume the following
What is the expected return (expressed in %) of a portfolio that has $7500 in Stock M and $5000 in Stock N? Assume the following three scenarios: Recession (with 15% probability), Normal (with 70% probability), boom (with 15% probability).The returns on Stock M in each scenario are the following:-12% in Recession, 6% in Normal, 12% in Boom. The returns on Stock N in each scenario are the following:10% in Recession, -2% in Normal, 5% in Boom.
Question 32 options:
| 4.32 |
| 3.19 |
| 1.98 |
| 2.86 |
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