Invests 70% of your money in Hamburger Hut and 30% of your money in Pizza King. The
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Question:
Invests 70% of your money in Hamburger Hut and 30% of your money in Pizza King. The expected returns for these companies depends on the economy, and are as follows:
Economy Probability HamburgerHut PizzaKing
Strong 25% 8% 2%
Normal 50% 6% 5%
Weak 25% 4% 10%
What is the expected return and standard deviation of returns for your portfolio?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
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