Question: Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 0.20 0.15 0.28 Bust 0.68 0.09 -0.08 0.18 What is the
Consider the following information:
State Probability Stock A Stock B Stock C
Boom 0.32 0.20 0.15 0.28
Bust 0.68 0.09 -0.08 0.18
What is the expected return of a portfolio that has invested $8300 in Stock A, $7800 in Stock B, and $14400 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
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