What is the expected return on an equally weighted portfolio of these three stocks?
What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
|
State of Economy
|
Probability of
State Economy
|
Stock A
|
Stock B
|
Stock C
|
|
Boom
|
.35
|
.07
|
.15
|
.33
|
|
Bust
|
.65
|
.13
|
.03
|
-.06
|