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. 3.75%. B. 4.20%. C. 4.23%.

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