Question: please answer each part in order and if correct ill thumbs up, thank you Question 8 1 pts Consider the following information: State Probability Stock

 please answer each part in order and if correct ill thumbs

please answer each part in order and if correct ill thumbs up, thank you

Question 8 1 pts Consider the following information: State Probability Stock A Stock B Stock Boom 0.65 -0.13 0.13 -0.1 Bust 0.35 0.11 0.19 -0.09 What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals les 0.1234) Question 9 2 pts Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.12 0.13 -0.08 Bust 0.68 0.22 0.04 -0.06 What is the expected return of a portfolio that has invested $13,154 in Stock A $2.402 in Stock B, and $14.468 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals leg. 0.1234)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!