Question
What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? STATE
What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C?
STATE of ECON Prob of State of Econ Ret of State Occurs
Stock A B C
BOOM 20% 18% 9% 6%
NORMAL 70% 11% 7% 9%
RECESSION 10% -10% 4% 13%
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
