What is the expected return of portfolio

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Reference no: EM131925207

Consider the following information:

State Probability Stock A Stock B Stock C

Boom 0.32 0.20 0.15 0.28

Bust 0.68 0.09 -0.08 0.18

What is the expected return of a portfolio that has invested $8300 in Stock A, $7800 in Stock B, and $14400 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).

Reference no: EM131925207

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