Question: What is the expected return on a portfolio that is invested 25% in stock A, 55% in stock B, and the remainder in stock C?
What is the expected return on a portfolio that is invested 25% in stock A, 55% in stock B, and the remainder in stock C?
| State | Probability | Stock A | Stock B | Stock C |
| Boom | 5% | 19% | 9% | 6% |
| Normal | 45% | 11% | 8% | -13% |
| Recession | 50% | -23% | 5% | 25% |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
