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What is the expected return on a portfolio comprised of $6,900 of stock M and $4,800 of stock N if the economy enjoys a boom
What is the expected return on a portfolio comprised of $6,900 of stock M and $4,800 of stock N if the economy enjoys a boom period?
| State | Probability of State | Return if State Occurs | |
|---|---|---|---|
| Stock M | Stock N | ||
| Boom | 42% | 34% | 12% |
| Normal | 24% | 20% | 23% |
| Recession | 34% | -24% | 11% |
Expected Portfolio Return in a boom = %
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Business Finance
Authors: Eddie McLaney
11th Edition
1292134402, 9781292134406
