You have been provided returns for two shares, Clicks (JSE:CLS) and Dischem (JSE:DCP). Using the returns and
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Question:
You have been provided returns for two shares, Clicks (JSE:CLS) and Dischem (JSE:DCP). Using the returns and probabilities, answer the following questions:
Market_State Probability CLS DCP JSE
| MARKET SHARE | PROBABILITY | CLS | DCP | JSE |
| BRILLIANT | 15% | 30.02% | 8.41% | 19.22% |
| GOOD | 20% | 29.53% | 8.27% | 18.9% |
| NEUTRAL | 40% | 19.02% | 5.33% | 12.17% |
| BAD | 20% | 16.87% | 4.72% | 10.79% |
| TERRIBLE | 5% | 2.78% | 0.78% | 1.78% |
Assuming a 60%:40% weight in Clicks and Dischem, the expected portfolio return is closest to:
A) 6.37%
B) 5.71%
C) 3.26%
D) 5.04%
E) 4.94%
Expert Answer:
Solution CLS DCP Return Return Prob Return ocp Probability Returm Prob Market P... View the full answer
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