Question: 5. Given the following information, what is the expected return of a portfolio that is invested 35 percent in both stocks A and C, and

5. Given the following information, what is the expected return of

5. Given the following information, what is the expected return of a portfolio that is invested 35 percent in both stocks A and C, and 30 percent in stock B? State of Probability of Rate of Return if State Occurs Economy: State of Economy Stock A Stock B Stock C Boom .05 .24 .14 .07 Normal .85 .16 .08 .12 Recession . 10 -. 34 .02 .24 a. 8.98 percent b. 9.4? percent c. 10.41 percent (1. 10.83 percent e. 12.40 percent

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