You own a portfolio with the following expected returns given the various states of the economy.What is the overall portfolio expected return?
A)6.3%
B)6.8%
C)7.6%
D)10.0%
E)10.8%

Name: You own a portfolio with the following expected returns given the various states of the economy.What is the overall portfolio expected return? A)6.3% B)6.8% C)7.6% D)10.0% E)10.8%
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Question

You own a portfolio with the following expected returns given the various states of the economy.What is the overall portfolio expected return? 
A)6.3% 
B)6.8% 
C)7.6% 
D)10.0% 
E)10.8%

Quizplus · Accepted Answer

E(r)= (.15 F1F1F1S1F1F1F10 .18)+ (.60 F1F1F1S1F1F1F10 .11)+ (.25 F1F1F1S1F1F1F10 -.10)= .027 + .066 - .025 = .068 = 6.8%

You Own a Portfolio with the Following Expected Returns Given