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

Question

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 XXXXXXXXXX%
Flat Market XXXXXXXXXX%
Bear Market XXXXXXXXXX%
Small Co. Stocks Bull Market XXXXXXXXXX%
Flat Market XXXXXXXXXX% 
Bear Market XXXXXXXXXX%
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?

Robert · Accepted Answer

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.

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 XXXXXXXXXX% Flat Market...

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