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You have a portfolio which is comprised of 55 percent of stock A and 45 percent of stock B. What is the expected return on
You have a portfolio which is comprised of 55 percent of stock A and 45 percent of stock B. What is the expected return on this portfolio?
| State of the Economy | Probability | E(R) A | E(R) B | ||||||||
| Weight | 55 | % | 45 | % | |||||||
| Boom | 0.15 | 19 | % | 12 | % | ||||||
| Normal | 0.65 | 11 | % | 7 | % | ||||||
| Recession | 0.20 | -16 | % | 1 | % | ||||||
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Before You Buy The Homebuyers Handbook For Todays Market
Authors: Michael Corbett, Jim Gillespie
1st Edition
0452296803, 978-0452296800
