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Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.05 -0.20 Bust 0.
Consider the following information:
State Probability Stock A Stock B Stock C
Boom 0.32 -0.05 -0.01 0.20
Bust 0.68 0.15 0.02 0.25
What is the expected return of a portfolio that has invested $2600 in Stock A, $10700 in Stock B, and $6400 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).
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