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You decide to invest in a portfolio consisting of 40 percent Stock A, 40 percent Stock B, and the remainder in Stock C. Based on
You decide to invest in a portfolio consisting of 40 percent Stock A, 40 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio?
| State of Economy | Probability of State of Economy | Return if State Occurs | ||
|---|---|---|---|---|
| Stock A | Stock B | Stock C | ||
| Recession | .23 | -17.0% | -3.0% | -21.9% |
| Normal | .49 | 12.0% | 7.6% | 16.2% |
| Boom | .28 | 26.8% | 14.9% | 30.8% |
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Commodity Finance Principles And Practice
Authors: Weixin Huang
1st Edition
1781371938, 978-1781371930
