Question: SHOW YOUR WORK!!!! Problem 1. (5 Points) Consider the following information on a portfolio of three stocks : State of Economy Probability of State Occurring

SHOW YOUR WORK!!!! Problem 1. (5 Points) Consider the following information on a portfolio of three stocks : State of Economy Probability of State Occurring 6) Rate of Return Stock A Stock B Stock C 06 15 9112 17 1032-35 28 Boom Nomal Bust 05 SO . 15 The portfolio is invested 40% in Stocks A & B and the remaining balance in Stock C. The current risk free rate is 4.03 percent, what is the expected return of this portfolio? Ans

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