Expected return on equally weighted portfolio

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Reference no: EM131552942

Rate of Return if State Occurs

State of Economy Probability of

State of Economy Stock A Stock B Stock C

Boom 0.74 0.29 0.09 0.11

Bust 0.26 0.17 0.05 0.15

Requirement 1:

What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.)

(Click to select)

15.29%

17.79%

27.32%

30.09%

9.56%

Requirement 2:

What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not round your intermediate)

Reference no: EM131552942

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