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

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Finance

Given the following information about the returns of stocks A,B, and C, what is the expected return of a portfolio invested 30%in stock A, 40% in stock B, and 30% in stock C?

State of economyProbabilityStock AStock BStock C
Boom0.140.330.360.26
Good0.290.290.150.27
Poor0.2100.010.02
Bust---0.19-0.21-0.11

Enter answer in percents.

Answer & Explanation Solved by verified expert
4.2 Ratings (734 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 A33 stock    See Answer
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Given the following information about the returns of stocks A,B, and C, what is the expected return of a portfolio invested 30%in stock A, 40% in stock B, and 30% in stock C?State of economyProbabilityStock AStock BStock CBoom0.140.330.360.26Good0.290.290.150.27Poor0.2100.010.02Bust---0.19-0.21-0.11Enter answer in percents.

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