Question: Given the following information, what is the expected return on a portfolio that is invested 35 percent in Stock A, 45 percent in Stock

Given the following information, what is the expected return on a portfolio

Given the following information, what is the expected return on a portfolio that is invested 35 percent in Stock A, 45 percent in Stock B, and the balance in Stock C? State of Economy Probability of State Occurring Stock A (%) Stock B (%) Stock C (%) Boom .12 16.7 18.9 6.4 Normal .85 14.2 11.4 9.5 Recession .03 6.4 -3.8 11.2 12.04 percent B 12.16 percent 12.91 percent 13.46 percent E 11.87 percent

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