Question: portfolio expected return Portfolio Expected Return Consider a portfolio with 45% invested in Stock A, 20% invested in Stock Band 35% invested in Stock C.
Portfolio Expected Return Consider a portfolio with 45% invested in Stock A, 20% invested in Stock Band 35% invested in Stock C. The probability of a Woak Economy is 0.1, the probability of a Strong Economy is 0.1, and the probability of an Average Economy is 0.8 Stock Apays 3% in a Weak Economy. -2.2% in a Strong Economy, and -42% in an Average Economy Stock B pays 49% in a Weak Economy, 7.8% in a Strong Economy, and 6,8% in an Average Economy Stock pays -3.2% in a Weak Economy, 3.5% in a Strong Economy, and 0.1% in an Average Economy Read the information above carefully First create a table that summarizes the information above Then solve for the Expected Return of the Potfolio Include your answer as a percentage to two decimals and with a negative if appropriate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
