Question
You are going to make a portfolio consisting of 20 % of Bank of America Stock and 80 % of Caterpillar Stock. You also have
You are going to make a portfolio consisting of 20 % of Bank of America Stock and 80 % of Caterpillar Stock. You also have the following information:
| State i | Probability of State i | BOA Return | Caterpillar Return |
|---|---|---|---|
| Boom | 40 % | 38 % | 25 % |
| Bust | 60 % | -7 % | -6 % |
What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals)
Answer:
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The Complete FinOps Handbook Essential Tools And Techniques For Financial Operations
Authors: Peter Bates
1st Edition
1922435546, 978-1922435545
