What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period A 6 40 B 6 80 C 10 40 D 13 20 E 14 00 Returns if State Occurs Stock M StockN State of Econom Boom Normal Recession Probability of State of Economv 10 75 15 10 8 60 18 ...

D 1320 Computation of Expected Return on Port folio Economy Probability Stoc ...

What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in

Question:

What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?

A. 6.40%
B. 6.80%
C. 10.40%
D. 13.20%
E.14.00%

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...