Consider the following information about three stocks: Rate of Return if State Occurs State ofProbability of EconomyState of EconomyStock A Stock B…
Consider the following information about three stocks: Rate of Return if State Occurs State ofProbability of EconomyState of EconomyStock AStock BStock C Boom .25 .30 .42 .54 Normal .45 .12 .10 .08 Bust .30 .03 -.24 -.44 a–1.If your portfolio is invested 45 percent each in A and B and 10 percent in C, what is the portfolio expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio expected return % a–2.What is the variance? (Do not round intermediate calculations and […]