You have the following data on a portfolio. You have decided to invest 11% of your money in Asset A and 89% in Asset B. Find the return on your portfolio. Asset Returns in Bust and Boom Economy Probability Return A Bust 13% 17% Boom 87% 20% Return B 5% 36%

You have the following data on a portfolio. You have decided to invest 11% of your money in Asset A and 89% in Asset B. Find the return on your portfolio. Asset Returns in Bust and Boom Economy Probability Return A Bust 13% 17% Boom 87% 20% Return B 5% 36%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

You have the following data on a portfolio. You have decided to invest 11% of your money in
Asset A and 89% in Asset B. Find the return on your portfolio.
Asset Returns in Bust and Boom
Economy Probability Return A
Bust 13%
17%
Boom
87%
20%
O 19.61%
O 31.97%
O 30.61%
O27.68%
25,79%
Return B
5%
36%

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