What is the expected return on an equally weighted portfolio

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Reference no: EM13698352

Consider the following information:

Rate of Return if State Occurs
State of Probability of
Economy State of Economy Stock A Stock B Stock C
Boom 0.62 0.10 0.19 0.37
Bust 0.38 0.16 0.08 - 0.04

a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Expected return %

b.  What is the variance of a portfolio invested 16 percent each in A and B and 68 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places. (e.g., 32.161616))

Reference no: EM13698352

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