Use the following information to find expected return for this portfolio. State of Economy Probability of...

Use the following information to find expected return for this portfolio.

State of Economy	Probability of State	Returns if State Occurs
State of Economy	Probability of State	Stock A	Stock B	Stock C	Stock D
Boom	40%	-15%	16%	25%	20%
Normal	30%	5%	10%	-3%	2%
Recession	30%	28%	6%	-10%	-5%
Portfolio Weights		10%	20%	30%	40%

ANSWERS:

11.20%

3.90%

8.19%

7.08%

7.30%

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jeff jeffy answered 1 year ago

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