What is the expected return on equally weighted portfolio

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Reference no: EM131068916

Rate of Return

State of Economy Probability of the State of Economy Stock A Stock B Stock C

Boom .58 .14 .22 .40

Bust .42 .16 .06 −.05

a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % b. What is the variance of a portfolio invested 22 percent each in A and B and 56 percent in C?

Reference no: EM131068916

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