Question: Given the following information, the expected return on a portfolio composed of 70% of Abel Co and 30% of Zorro Ltd is closest to: Scenario

Given the following information, the expected return on a portfolio composed of 70% of Abel Co and 30% of Zorro Ltd is closest to:

Scenario Probability Abel Zorro
Rapid Expansion 25% 16.00% 3.00%
Moderate Expansion 40% 9.10% 6.00%
Recession 35% -4.70% 12.180%
A.

6.95%.
B.

6.43%.
C.

6.89%.

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