Question: Given the following information, What is the expected return on a portfolio which is invested 40% in Stock X and 60% in Stock Y? State

  1. Given the following information, What is the expected return on a portfolio which is invested 40% in Stock X and 60% in Stock Y?
    State of Economy Prob. Stock X Stock Y
    Boom 10% 25% -17%
    Normal 70% 10% 7%
    Recession 20% -15% 30%

    6.5%

    7.8%

    8.1%

    9.2%

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