Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32...
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Accounting
Consider the following information:
State Probability Stock A Stock B Stock C
Boom 0.32 0.14 -0.07 0.01
Bust 0.68 0.14 0.26 0.23
What is the expected return of a portfolio that has invested $14,089 in Stock A, $7,144 in Stock B, and $17,135 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
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