Expected return on equally weighted portfolio

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Reference no: EM132050353

Consider the following information: State Probability Stock A Stock B Stock C Boom 0.65 0.27 0.23 0.28 Bust 0.35 0.21 -0.03 0.23 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).

Reference no: EM132050353

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