Question: B Given the following information, what is the expected return on a portfolio that is invested 30 percent in both Stocks A and C, and
B Given the following information, what is the expected return on a portfolio that is invested 30 percent in both Stocks A and C, and 40 percent in Stock B? (Enter your answer as a % accurate to two decimals points) State of Probability of Return of Stock Return of Stock Return of Stock Economy State Occurring C (%) (96) (96) Boom 0.08 15.6 13.2 12.9 Normal 0.87 11.2 Recession 0.05 2.5 1.2 -5.6 9.6 8
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