What is the expected return on an equally weighted


Consider the following information:

State Probability Stock A Stock B Stock C

Boom 0.65 0.01 0.16 0.22

Bust 0.35 0.20 -0.06 0.10

What is the expected return on an equally weighted portfolio of these three stocks? (Hint: Equally means that each stock has the same weight. Given that there are only 3 stocks, each has a weight of 1/3) Enter the answer with 4 decimals (e.g. 0.1234).

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Financial Management: What is the expected return on an equally weighted
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