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  3. you have a portfolio which is comprised of 70 perc

You have a portfolio which is comprised of 70 percent of stock A and 30...

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Finance

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You have a portfolio which is comprised of 70 percent of stock A and 30 percent of stock B. What is the expected return on this portfolio? Probability State of the Economy Weight Boom 0.2 0.6 E(R) A 60% 20% 12% - 10% E(R) B 40% 15% 8% 3% Normal Recession 0.2 O 7.30 percent O 7.58 percent 8.03 percent 8.88 percent 9.40 percent

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