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What is the expected return on a portfolio which is invested 15 percent in stock A, 20 percent in stock B, and the remainder in
What is the expected return on a portfolio which is invested 15 percent in stock A, 20 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 | 35% | 5% | 16% | 27% |
| Normal | 30% | 18% | 22% | 6% |
| Recession | 35% | -16% | 12% | 11% |
Portfolio Expected Return = %
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith Baker
2nd Edition
0763726605, 9780763726607
