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You are considering investing in two securities, Omicron and Delta, and have th...
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You are considering investing in two securities, Omicron and Delta, and have the following information:
Security
|
Probability
|
Possible return
|
Omicron
|
0,4
0,3
0,3
|
16%
10%
2%
|
Delta
|
0,4
0,3
0,3
|
20%
12%
3%
|
You are required to calculate the expected return of a portfolio consisting of 40% Omicron and 60% Delta securities.
100%
0%
0%
0%