Partb : Calculate the expectedreturn for large and small stocks using the following information. Asset Class Scenario Probability E(return) Large Co. Stocks Bull Market XXXXXXXXXX% Flat Market...

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Part b: Calculate the expected return for large and small stocks using the following information.


Asset Class Scenario Probability E(return)


Large Co. Stocks Bull Market 0.40 18.50%


Flat Market 0.30 4.50%


Bear Market 0.30 -15.00%


Small Co. Stocks Bull Market 0.40 30.00%


Flat Market 0.30 8.50%


Bear Market 0.30 -22.00%



Part c: Based on your calculation for “part b” and assuming that the equity portion of your portfolio is divided equally between large and small companies, what is the expected return for the total equityportfolio?



Answered Same DayDec 21, 2021

Answer To: Partb : Calculate the expectedreturn for large and small stocks using the following information....

Robert answered on Dec 21 2021
115 Votes
Part b: Calculate the expected return for large and small stocks using the following information.
A
sset Class                      Scenario      Probability    E(return) 
Large Co. Stocks                       Bull Market     0.40            18.50%
                                                Flat Market     0.30            4.50%
                                                Bear Market   ...
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