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What is the expected return on a portfolio which is comprised of $1,000 invested in stock A, $2,500 in stock B, and $1,500 in stock
What is the expected return on a portfolio which is comprised of $1,000 invested in stock A, $2,500 in stock B, and $1,500 in stock C?
State of Probability of Returns if State Occurs
Economy State of Economy Stock A Stock B Stock C
Boom 20% 18% 9% 6%
Normal 70% 11% 7% 9%
Recession 10% -10% 4% 13%
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