Question: How is question 18's two steps worked out? You have invested $60,000 in Stock Abscissa and $40,000 in Stock Ordinate. Using the information below about
You have invested $60,000 in Stock Abscissa and $40,000 in Stock Ordinate. Using the information below about the stocks' returns to answer the following two questions. 18. Probability Abscissoa Normal 60% Recession 20% Depression 20% 15% 5% 5% Ordinate -5% 5% 15% Calculate the portfolio's return in a depression. 3.0% a. b. Calculate the portfolio's return in a recession. 5.0%
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