You decided to invest money into a portfolio of two stocks, Snapchat and Groupon. There are...
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You decided to invest money into a portfolio of two stocks, Snapchat and Groupon. There are two possibilities for what you can earn on each of these two stocks next year, the so-called "thumbs up" state and the so-called "thumbs down" state. The details are in the table below: State of the economy "Thumbs up" state "Thumbs down" state Probability of the Snapchat stock's state of the return in each state of the economy economy 30% Proportion of money Proportion of money invested into invested into Snapchat stock = Groupon stock = 20% 80% 70% 43% 8% Groupon stock's return in each state of the economy 14% 35% GROUPON Calculate the expected return on your portfolio next year. You decided to invest money into a portfolio of two stocks, Snapchat and Groupon. There are two possibilities for what you can earn on each of these two stocks next year, the so-called "thumbs up" state and the so-called "thumbs down" state. The details are in the table below: State of the economy "Thumbs up" state "Thumbs down" state Probability of the Snapchat stock's state of the return in each state of the economy economy 30% Proportion of money Proportion of money invested into invested into Snapchat stock = Groupon stock = 20% 80% 70% 43% 8% Groupon stock's return in each state of the economy 14% 35% GROUPON Calculate the expected return on your portfolio next year.
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Related Book For
Personal Financial Planning
ISBN: 9780357438480
15th Edition
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
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