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Suppose you have $20,000 total. If you put $14,000 in Stock A and the remainder in Stock B, what will be the expected return on your portfolio? State of Economy Return on A Return on B Probability 0.2 Recession -20% 30% Normal 0.5 10% 20% Boom 0.3 70% O a. 10.90% O b. 14.50% O c. 28.50% d. 24.70% 50%

Suppose you have $20,000 total. If you put $14,000 in Stock A and the remainder in Stock B, what will be the expected return on your portfolio? State of Economy Return on A Return on B Probability 0.2 Recession -20% 30% Normal 0.5 10% 20% Boom 0.3 70% O a. 10.90% O b. 14.50% O c. 28.50% d. 24.70% 50%

Essentials Of Investments
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
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QUESTION 7 Suppose you have $20,000 total. If you put $14,000 in Stock A and the remainder in Stock B, what will be the expected return on your portfolio? State of Economy Probability Return on A Return on B Recession 0.2 -20% 30% Normal 0.5 10% 20% Boom 0.3 70% 50% O a. 10.90% O b. 14.50% O c. 28.50% Od. 24.70% O a. 18.01% O b. 26.61% O c. 20.75% O d. 24.32% what will be the standard deviation on your portfolio? 27 2 F
Transcribed Image Text:QUESTION 7 Suppose you have $20,000 total. If you put $14,000 in Stock A and the remainder in Stock B, what will be the expected return on your portfolio? State of Economy Probability Return on A Return on B Recession 0.2 -20% 30% Normal 0.5 10% 20% Boom 0.3 70% 50% O a. 10.90% O b. 14.50% O c. 28.50% Od. 24.70% O a. 18.01% O b. 26.61% O c. 20.75% O d. 24.32% what will be the standard deviation on your portfolio? 27 2 F
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