Suppose that in one year only three possible outcomes can take place. In each one of...
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Suppose that in one year only three possible outcomes can take place. In each one of those possible scenarios the return of the stock of the companies Spin and Bang will take the following values with the indicated probabilities: Probabilitie Spin Bang S 0,1 0,2 0,7 0,09 -0,03 0,37 0,15 0,10 0,27 Suppose that you would like to invest in a portfolio of the two and your investment wealth is equal to 100,000 SEK. You would like to allocate 35,000 SEK to Spin and the rest will be invested in Bang. What will be the expected return of your portfolio? Suppose that in one year only three possible outcomes can take place. In each one of those possible scenarios the return of the stock of the companies Spin and Bang will take the following values with the indicated probabilities: Probabilitie Spin Bang S 0,1 0,2 0,7 0,09 -0,03 0,37 0,15 0,10 0,27 Suppose that you would like to invest in a portfolio of the two and your investment wealth is equal to 100,000 SEK. You would like to allocate 35,000 SEK to Spin and the rest will be invested in Bang. What will be the expected return of your portfolio?
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Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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