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What is the expected return on a portfolio that is invested 25% in stock A, 55% in stock B, and the remainder in stock C?
What is the expected return on a portfolio that is invested 25% in stock A, 55% in stock B, and the remainder in stock C?
State | Probability | Stock A | Stock B | Stock C |
Boom | 5% | 19% | 9% | 6% |
Normal | 45% | 11% | 8% | -13% |
Recession | 50% | -23% | 5% | 25% |
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