1 YOU HAVE INVESTED 30 PERCENT OF YOUR PORTFOLIO IN JACOB, INC. 4
# 1 YOU HAVE INVESTED 30 PERCENT OF YOUR PORTFOLIO IN JACOB, INC.
40 PERCENT IN BELLA CO., AND 30 PERCENT IN EDWARD RESOURCES. WHAT IS THE EXPECTED RETURN OF YOUR PORTFOLIO IF JACOB, BELLA, AND EDWARD HAVE EXPECTED RETURNS OF O.10, O.19, AND 0.13, RESPECTFULLY
#2 USE THE FOLLOWING INFORMATION TO CALCULATE, YOUR COMPANY’S RETURN:
STATE PROBABILITY RETURN
BOOM 20% 0.38
NORMAL 60% 0.14
RECESSION 20% 0.15