Ms Maple is considering two securities, A and B, and the relevant information is given below State of the economy Probability Return on A( ) Return on B( ) Bear 0 3 2 0 5 Bull 0 7 16 0 5 Suppose Ms maple wants to have a portfolio, which pays 20 expected return What are the weights of securities A and b in this new portfolio What do these weights means

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Question: Ms. Maple is considering two securities, A and B, and the relevant information is given below: State of the economy Probability Return on A(%) Return

Ms. Maple is considering two securities, A and B, and the relevant information is given below:

State of the economy	Probability	Return on A(%)	Return on B(%)
Bear	0.3	-2	0.5
Bull	0.7	16	0.5

Suppose Ms maple wants to have a portfolio, which pays 20% expected return. What are the weights of securities A and b in this new portfolio. What do these weights means?

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