12. Given the following information about the returns of stocks A, B, and C, what is...

90.2K

Verified Solution

Question

Finance

12. Given the following information about the returns of stocksA, B, and C, what is the expected return of a portfolio invested30% in stock A, 40% in stock B, and 30% in stock C?
State of economy Probability Stock A Stock B Stock C
Boom 0.19 0.36 0.21 0.39
Good 0.23 0.23 0.22 0.23
Poor 0.25 0.06 0.07 0.06
Bust -- -0.14 -0.1 -0.21
Enter answer in percents.

State of economy	Probability	Stock A	Stock B	Stock C
Boom	0.19	0.36	0.21	0.39
Good	0.23	0.23	0.22	0.23
Poor	0.25	0.06	0.07	0.06
Bust	--	-0.14	-0.1	-0.21

Answer & Explanation Solved by verified expert

4.4 Ratings (851 Votes)

Expected return Summation of percentage invested in the stockStock return Given that the percentage of investment in stock A30 stock B40 and stock C30 In boom state of economy the returns on stock A36 stock See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

12. Given the following information about the returns of stocksA, B, and C, what is the expected return of a portfolio invested30% in stock A, 40% in stock B, and 30% in stock C?State of economyProbabilityStock AStock BStock CBoom0.190.360.210.39Good0.230.230.220.23Poor0.250.060.070.06Bust---0.14-0.1-0.21Enter answer in percents.

12. Given the following information about the returns of stocks A, B, and C, what is...

90.2K

Verified Solution

Question

Finance

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students

4) A recent Harris Poll on green behavior showed that 25% of adults often purchased used...

Initiation of protein synthesis in prokaryotes and eukaryotes is basically similar but there are some significant...

Conflict occurs when two or more individuals perceive a situation differently and at least one person’s...

If the natural frequency of a string is 250 Hz the wavelength of the sound...

13 Properties Find the value of x in the figure O x 15 x 30...

In Problems 1 8 evaluate the given iterated integral 3 x xy 2 24xy dz...

Question 16 You really struggle remembering to bring your lunch to work Each day seems...

Answer the questions about the following function f x x 12 x 3 a Is...

Convert the numeral to a numeral in base ten 51 1218

Evaluate the function at the given values f x x 4 a f 6 b...

Explain how estimates of service costs help managers to manage resources and create values.

Create chart for A,B,C,D with account title and explanation, debit and credit