Assignment: Problem Set $11A$

Question $1$: You own a portfolio that is $15\%$ invested in Stock X$,40\%$ in Stock Y$,$ and $45\%$ in Stock Z$.$ The expected returns on these three stocks are $10\%,13\%$ and $15\%,$ respectively. What is the expected return of the portfolio?

Question $2$: Based on the following information for an individual stock, calculate the expected return.

$\backslash$table$[[\backslash$table$[[$State of$],[$Economy$]],\backslash$table$[[$Probability of$],[$State of Economy$]],\backslash$table$[[$Rate of Return If$],[$State Occurs$]]],[$Recession$,\mathrm{.}30,-\mathrm{.}11],[$Boom$,\mathrm{.}70,\mathrm{.}21]]$

Question $3$: You have $$100$ to invest. Your choices are Stock A with a return of $10\%$ and Stock B with a return of $8\mathrm{.}6\%.$ You want a portfolio with a return of $9\%$ How much money should you invest in Stock A and Stock B$?$