You Own a Portfolio with the Following Expected Returns Given

question 3

Multiple Choice

You own a portfolio with the following expected returns given the various states of the economy.What is the overall portfolio expected return?
State of Probability of Rate of Return

• A)5.80%
• B)6.83%
• C)7.62%
• D)10.05%
• E)10.81%

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Definitions:

Surplus

A situation where the quantity of goods or services supplied exceeds the quantity demanded at the current price.

Deficit

The amount by which expenses exceed income or revenues, commonly used in the context of government budgets.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.

French Truffles

A highly prized type of edible fungi native to France, known for its distinctive aroma and flavor, used as a delicacy in culinary dishes.