Question: Here are the expected returns on two stocks: Probability X Y 0.2 -20% 10% 0.6 20 15 0.2 40 20 Agent Fox Mulder wants to

Here are the expected returns on two stocks:

Probability X Y

0.2 -20% 10%

0.6 20 15

0.2 40 20

Agent Fox Mulder wants to form a XY Files portfolio consisting of 70% Stock X and 30% Stock Y. What is the XY Files portfolio expected return?

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