Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.26 -0.1 -0.08 Bust 0.35 0.15 0.16 0.18 What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals (e.g. 0.1234).
Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.26 -0.1 -0.08 Bust 0.35 0.15 0.16 0.18 What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals (e.g. 0.1234).
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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Consider the following information:
State Probability Stock A Stock B Stock C
Boom 0.65 0.26 -0.1 -0.08
Bust 0.35 0.15 0.16 0.18
What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals (e.g. 0.1234).
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