Question: Consider the below table, and that Jimmy invests 40% in JKL Corp. and 60% in MNO Corp. What would be the portfolio's expected return? State

Consider the below table, and that Jimmy invests 40% in JKL Corp. and 60% in MNO Corp. What would be the portfolio's expected return?

State of Economy

Probability of State

JKL Return

MNO Return

Boom

40%

35%

20%

Good

30%

25%

15%

Poor

10%

-10%

10%

Bust

20%

-35%

5%

13.50%

14.10%

14.50%

15.10%

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