1 answer

Suppose the following distribution describes the possible returns from a portfolio in 1 year: there is...

Question:

Suppose the following distribution describes the possible returns from a portfolio in 1 year: there is a 36% chance of the portfolio return being -9%, a 15% chance the portfolio return is 3%, a 10% chance the portfolio return is 10%, and otherwise, the portfolio return will be 22%. What is the expected return on the portfolio? (please express your answer as a percentage and use 2 decimal places)


Answers

Answer - expected return on portfolio = 6.79%

o t 1% t 8.58%

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