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

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%

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