What is expected return of portfolio

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Reference no: EM131613227

Consider the following information:

State Probability Stock A Stock B Stock C

Boom 0.32 0.13 -0.03 0.03

Bust 0.68 0.07 0.08 -0.06

What is the expected return of a portfolio that has invested $9100 in Stock A, $2500 in Stock B, and $2500 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).

Reference no: EM131613227

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