Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Consider the following information:
State Probability Stock A Stock B Stock C
Boom 0.32 -0.15 0.04 -0.14
Bust 0.68 0.01 0.03. 0.27
What is the expected return of a portfolio that has invested $7,525 in Stock A, $18,067 in Stock B, and $6,092 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
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