Question: show work if possible Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.26 0.05 0 Bust 0.35 0.13 0.19
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.26 0.05 0 Bust 0.35 0.13 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 (e.g. 0.1234)
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