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What is the expected return on a portfolio which is invested 20 percent in stock A, 10 percent in stock B, and the remainder in
What is the expected return on a portfolio which is invested 20 percent in stock A, 10 percent in stock B, and the remainder in stock C?
| State of Economy | Probability of State | Return if State Occurs | ||
|---|---|---|---|---|
| Stock A | Stock B | Stock C | ||
| Boom | 40% | 3% | 17% | 30% |
| Normal | 20% | 19% | 24% | 5% |
| Recession | 40% | -15% | 13% | 9% |
Portfolio Expected Return = %
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F For Quantitative Finance
Authors: Johan Astborg
1st Edition
1782164626, 978-1782164623
