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What is the expected return on an equally weighted portfolio

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Reference no: EM132465081

Consider the following information:

 

Probability of

 

 

 

State of
Economy

State

of Economy              Stock A Stock B Stock C

Boom

.74

.12

.06

.32

Bust

.26

.21

.27

-12

Question a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 3216.)

Question b. What is the variance of a portfolio invested 29 percent each in A and B and 42 percent in C?

Reference no: EM132465081

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