1. Consider the following three scenarios for the returns of four different stocks. As- sume that...
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1. Consider the following three scenarios for the returns of four different stocks. As- sume that a portfolio is constructed by four stocks with weights w₁ = 10%, W₂ 20%, W3 = 30% and w₁ = 40%. Find the expected return on the portfolio. Scenario الها ولا W3 Probability K₁ K₂ K3 0.2 -5% -10% -20% 16% 18% 0% 20% 15% 30% 0.5 0.3 K₁ 35% 5% -12% 1. Consider the following three scenarios for the returns of four different stocks. As- sume that a portfolio is constructed by four stocks with weights w₁ = 10%, W₂ 20%, W3 = 30% and w₁ = 40%. Find the expected return on the portfolio. Scenario الها ولا W3 Probability K₁ K₂ K3 0.2 -5% -10% -20% 16% 18% 0% 20% 15% 30% 0.5 0.3 K₁ 35% 5% -12%
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