Question: Here are the expected returns on two shares: Returns Probability X Y 0.1 -20%10% 0.8 20 15 0.1 40 20 If you form a 50-50

Here are the expected returns on two shares:

Returns

Probability X Y

0.1 -20%10%

0.8 20 15

0.1 40 20

If you form a 50-50 portfolio of the two shares (X & Y), what is the portfolio's expected return?

Select one:

a.13.4%

b.8.1%

c.10.5%

d.20.0%

e.16.5%

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