An investor has a portfolio with 30% invested in gold stocks, and 70% in industrial stocks. it is expected that gold stocks will provide a 4% return in a good economy and 18% in a poor economy. Industrial stocks are expected to provide a 9% return in a good economy and -9% in a poor economy. The probability of a good economy is $40% and 60% in a poor economy. given this info calculate the expected rate of return on the portfolio.

Answer rating: 100% (QA)

To calculate the expected rate of return on the portfolio we need to consider the weighted av... View the full answer