Question
You are going to make a portfolio consisting of 50 % of Lloyds of London Stock and 50 % of Tencent Stock. You also have
You are going to make a portfolio consisting of 50 % of Lloyds of London Stock and 50 % of Tencent Stock. You also have the following information:
| State i | Probability of State i | LofL Return | Tencent Return |
|---|---|---|---|
| Boom | 40 % | 39 % | 34 % |
| Bust | 60 % | -2 % | 44 % |
What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals)
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino
7th Canadian Edition
1259650650, 978-1259650659
