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What is the expected return on a portfolio which is invested 35 percent in stock A, 35 percent in stock B, and the remainder in
What is the expected return on a portfolio which is invested 35 percent in stock A, 35 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 | 15% | 15% | 11% | 12% |
| Normal | 25% | 13% | 12% | 11% |
| Recession | 60% | -21% | 7% | 21% |
Portfolio Expected Return = %
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Finance And Financial Markets
Authors: Keith Pilbeam
4th Edition
1137515627, 978-1137515629
