Answers
Portfolio A | |||
Scenario | Probability | Return% | =rate of return% * probability |
Scenario 1 | 0.22 | -4 | -0.88 |
Scenario 2 | 0.46 | 17 | 7.82 |
Scenario 3 | 0.32 | 23 | 7.36 |
Expected return %= | sum of weighted return = | 14.3 |
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