Consider the following information: State of Probability of State of Economy .60 .40 Economy Boom Bust Rate of Return If State Occurs Stock A .15 .18 Stock B Stock C .23 .08 .42 -.09 What is the expected return of a portfolio equally invested in stocks A, B, and C? Round to the nearest XX.XX%

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
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Consider the following information:
State of Probability of
State of
Economy
.60
40
Economy
Boom
Bust
Rate of Return If State Occurs
Stock A
.15
.18
Stock B
.23
.08
Stock C
.42
-.09
What is the expected return of a portfolio equally invested in
stocks A, B, and C? Round to the nearest XX.XX%
Transcribed Image Text:Consider the following information: State of Probability of State of Economy .60 40 Economy Boom Bust Rate of Return If State Occurs Stock A .15 .18 Stock B .23 .08 Stock C .42 -.09 What is the expected return of a portfolio equally invested in stocks A, B, and C? Round to the nearest XX.XX%
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