Question
You are going to make a portfolio consisting of 60 % of Lloyds of London Stock and 40 % of Tencent Stock. You also have
You are going to make a portfolio consisting of 60 % of Lloyds of London Stock and 40 % of Tencent Stock. You also have the following information:
| State i | Probability of State i | LofL Return | Tencent Return |
|---|---|---|---|
| Boom | 90 % | 12 % | 38 % |
| Bust | 10 % | -10 % | 16 % |
What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals)
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The Oxford Handbook Of Entrepreneurial Finance
Authors: Douglas Cumming
1st Edition
0195391241, 978-0195391244
