question archive There are two assets and three states of the economy: Probability of State of Economy State of Return on Stock Return on Stock A B Economy Recession * 0
There are two assets and three states of the economy: Probability of State of Economy State of Return on Stock Return on Stock A B Economy Recession * 0
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There are two assets and three states of the economy: Probability of State of Economy State of Return on Stock Return on Stock A B Economy Recession * 0.20 -0.15 0.20 Normal 0.50 0.20 0.30 Boom 0.30 0.60 0.40 Suppose you put $15,000 in Stock A and $5,000 in Stock B, what is the expected return on your porfolio?
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