Question: 1. Consider the following three scenarios for the returns of four different stocks. As- sume that a portfolio is constructed by four stocks with

1. Consider the following three scenarios for the returns of four different

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 w = 10%, W 20%, W3 = 30% and w = 40%. Find the expected return on the portfolio. Scenario W3 Probability K K K3 0.2 -5% -10% -20% 16% 18% 0% 20% 15% 30% 0.5 0.3 K 35% 5% -12%

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