Question: Given the following information, the expected return on a portfolio composed of 65% of Abel Co and 35% of Zorro Ltd is closest to: Scenario

Given the following information, the expected return on a portfolio composed of 65% of Abel Co and 35% of Zorro Ltd is closest to:

Scenario Probability Abel Zorro
Rapid Expansion 20% 9.50% -2.50%
Moderate Expansion 30% 4.75% 5.00%
Recession 50% -1.80%

10.40%

A) 4.20%

B) 3.75%

C) 4.23%

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