Solution-What are expected rate of return

What are expected rate of return

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Reference no: EM133056723

You have a two stock portfolio with $700 in stock A and $300 in stock B.

You believe the following probability distribution exists for your stocks.

State of the Economy	Probability of State Occurring	Market Rate of Return of Stock A	Market Rate of Return of Stock B	Portfolio Return
Boom	0.3	-10%	25%
Normal	0.6	10%	15%
Recession	0.1	20%	5%

What are expected rate of return, risk, and CV of stock A?

Reference no: EM133056723

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What are expected rate of return

Reference no: EM133056723

Reference no: EM133056723

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