Question: What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? State

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C?

State of Econ Probability of state of Econ Ret if state occurs

Stock A Stock B Stock C

BOOM 20% 18% 9% 6%

NORMAL 70% 11% 7% 9%

RECESSION 10% -10% 4% 13%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? the expected returns on A, B and C are 25%, 20% and 8%

Q:

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? STATE of ECON Prob of State of Econ Ret of State Occurs Stock A B C BOOM 20% 18% 9% 6%...

Q:

I have some finance problems need help,please download and look at them. 1. You purchased 200 shares of stock at a price of $36.72 per share. Over the last year, you have received total dividend...

Q:

What is the standard deviation on a stock? What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock ?C? State of Economy Boom Normal Recession...

Q:

Question 19 1 pts What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? State of Probability of Returns if State Occurs Economy State of...

Q:

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? State of Probability of Economy State of Boom Normal Recession Economy 20% 70% 10%...

Q:

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? A) 7.4% B) 8.25% C) 8.33% D) 9.45% E 9.5% State of Economy Boom Normal Recession...

Q:

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? Please show results. State of Economy Probability of State Returns if State Occurs of...

Q:

Given the three possible future states of the economy, their probablities, and the returns to Stocks A, B, & C by state, what is the expected return on a portfolio which is invested 20% in stock A,...

Q:

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? State of Economy Returns if State Occurs Stock C 6% Boom Normal 9% Recession 13%...

Q:

Explain how debits and credits are posted and the types of accounts that are impacted by each of these transactions. In other words, do debits impact assets and if so, does the debit increase or...

Q:

You will use the GNU readline library which reads a line of input from a user and allows editing of the line. Print a command prompt > and read a line of data using function readline (char *...

Q:

Find the parametric equations for the line of intersection of the planes 6 x 2 y + 5 z = 3 6 and 8 x 8 y 5 z = 6 when x = 0 .

Q:

In Europe the airlines and railway sectors are competing for the travel needs of the increasingly mobile and massive consumer market. Travel with Us, a leading airline company is looking to create a...

Q:

Assignment resources The event: https://www.youtube.com/watch?v=lYX35Z L-dw The post-event review: https://www.youtube.com/watch?v=KdXkT-mxJJs Text book 3ed section 8.6 4ed section 8.7 5 ed chapter 7...

Q:

3.1-Analyse the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for an organisation. Plan at least two alternative strategies,...

Q:

Suppose the current term structure of interest rates is (0.076, 0.073, 0.079, 0082, 0.080). A plain vanilla interest rate swap will make payments at the end of each year equal to the floating short...

Q:

A water district is experiencing water shortages, and must seek additional groundwater. The district is considering two alternatives, as follows: a. Drill a new well. The new well is expected to last...

Q:

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Q:

Describe activity-based budgeting.

Q:

Explain process value analysis.

Q:

Describe activity-based financial performance measurement.