?A portfolio is composed of three assets, A, B, and C for which the following features apply:
State of the World |
Probability of occurrence |
Asset Returns in % |
---|
|
|
A |
B |
C |
Recession |
0.25 |
5 |
2 |
3 |
Normal |
0.50 |
7 |
6 |
4 |
Expansion |
0.25 |
9 |
10 |
5 |
What is the expected return of Asset A in Table?