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: economy "Thumbs up" state State of the Probability of the state Snapchat stock's return in each Groupon stock's return in each of the economy state of the economy state of the economy "Thumbs down" state 70% Proportion of money invested into Snapchat stock = 25% 30% 41% Proportion of money invested into Groupon stock = 75% GROUPON 11% 11% 39% Calculate the expected return on your portfolio next year. Put your answer in percent but do NOT use the "%" sign, and round to TWO decimal places. For example, if you got 12.34%, type just 12.34. 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: economy "Thumbs up" state State of the Probability of the state Snapchat stock's return in each Groupon stock's return in each of the economy state of the economy state of the economy "Thumbs down" state 70% Proportion of money invested into Snapchat stock = 25% 30% 41% Proportion of money invested into Groupon stock = 75% GROUPON 11% 11% 39% Calculate the expected return on your portfolio next year. Put your answer in percent but do NOT use the "%" sign, and round to TWO decimal places. For example, if you got 12.34%, type just 12.34.
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Expected Return Probability of Thumbs Up State Return in Thumbs Up State Probability of Thumbs Down ... View the full answer
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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