In: Finance
Do not do any interim rounding, calculate values to at least 6 decimal places before converting to a percentage, state answers as a percentage to 2 decimal places, do not include labels (%, $). For example, .06487 should be input as 6.49
Consider the following information about expected returns for two securities, Ravenwood Consulting and Brody Enterprises.
Probability | Ravenwood | Brody | |
Boom | 40% | 13.5% | -2% |
Neutral | 25% | 8% | 7% |
Bust | 35% | -1% | 9.8% |
The expected return for a portfolio invested 65% in Ravenwood and 35% in Brody is: