Question
You are going to make a portfolio consisting of 30 % of Lloyds of London Stock and 70 % of Tencent Stock. You also have
You are going to make a portfolio consisting of 30 % of Lloyds of London Stock and 70 % of Tencent Stock. You also have the following information:
| State i | Probability of State i | LofL Return | Tencent Return |
|---|---|---|---|
| Boom | 90 % | 30 % | 10 % |
| Bust | 10 % | -5 % | 96 % |
What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals)
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The Investors Guidebook To Fixed Income Investments
Authors: Stuart R. Veale
1st Edition
0735205310, 978-0735205314
