Your two favorite companies are Firefox and Twitter. You feel like every year in the future...

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Your two favorite companies are Firefox and Twitter. You feel like every year in the future will be randomly either a thumbs

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Answer 1

Answer #1

1.
Expected return for Firefox=30%*25%+70%*10%
=14.50000%

2.
Expected return for Twitter=30%*15%+70%*20%
=18.50000%

Expected return for portfolio=40%*14.50000%+60%*18.50000%=16.90000%

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Answer 2

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