Below are the possible percentage returns for stocks A and B for different future states, along...

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Below are the possible percentage returns for stocks A and B for different future states, along with the probabilities of those states occurring. You hold a portfolio consisting of $50,000 invested in stock A and $50,000 in stock B. What is the expected return (%) on your portfolio? Future Economy Recession Below Avg. Average Above Avg. Boom Prob. 10% 20 40 20 10 RA 25% 33 15 -12 29 RB 10% 2 20 47 6 Below are the possible percentage returns for stocks A and B for different future states, along with the probabilities of those states occurring. You hold a portfolio consisting of $50,000 invested in stock A and $50,000 in stock B. What is the expected return (%) on your portfolio? Future Economy Recession Below Avg. Average Above Avg. Boom Prob. 10% 20 40 20 10 RA 25% 33 15 -12 29 RB 10% 2 20 47 6

Answer rating: 100% (QA)

To calculate the expected return on your portfolio youll need to calculate the weighted average retu... View the full answer