Gama Investment Ltd has a growth portfolio consisting of an equally weighted holding of four shares. If the economy is experiencing boom conditions which is 69% of the time, the balance will be bust conditions. If the shares are expected to return the following returns (in decimals) for each state of the economy. 

State of Economy	Share A	Share B	Share C	Share D
Boom	0.194	0.200	0.287	0.248
Bust	0.046	-0.239	-0.004	-0.023

What is the expected return of Gama Investment Ltd.'s growth portfolio?

Answer rating: 100% (QA)

Finding the weighted average of the expected returns of each share using the likelihood of e... View the full answer