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What is the expected return on a portfolio comprised of $6,400 of stock M and $4,300 of stock N if the economy enjoys a boom
What is the expected return on a portfolio comprised of $6,400 of stock M and $4,300 of stock N if the economy enjoys a boom period?
| State | Probability of State | Return if State Occurs | |
|---|---|---|---|
| Stock M | Stock N | ||
| Boom | 22% | 24% | 7% |
| Normal | 64% | 15% | 13% |
| Recession | 14% | -29% | 16% |
Expected Portfolio Return in a boom = %
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
