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You bought shares of stock from Tesla, Target, and Toyota. You feel like every year in the future will be randomly either spectacular or depressing.
You bought shares of stock from Tesla, Target, and Toyota. You feel like every year in the future will be randomly either "spectacular" or "depressing". State of Economy Spectacular Depressing Probability of State of Economy 0.74 0.26 Rate of Return if State Occurs Stock Stock of Stock of of Tesla Target Toyota 0.33 0.07 0.07 0.13 0.09 0.17 Requirement 1: If you bought an equally weighted portfolio of Tesla, Target, and Toyota shares, what return would you expect to receive every year on your stock investment? (Do not round your intermediate calculations.) (Click to select) Requirement 2: What do you expect the variance of your portfolio returns to be, if you invested 10 percent of your money in Tesla's shares, same proportion in Target's shares, and 80 percent in Toyota's shares? (Do not round your intermediate calculations.) (Click to select)
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