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You have the following information on a portfolio. You put 20% of your money in A and 80% in B. Find the expected return on
You have the following information on a portfolio. You put 20% of your money in A and 80% in B. Find the expected return on your portfolio. (Ch13)
Economy | Probability | Return on A | Return on B |
State 1 (Bust) | .60 | 5% | -10% |
State 2 (Boom) | .40 | 30% | 65% |
a. 21.5%
b. 19.0%
c. 17.5%
d. 25.5%
e. 22.5%
I know the answer but I dont know how to get it, please show work in details
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