Question: If Microsoft stockholders expect either a 25.6% return or a 1.8% return, each with a 50% probability, and Apple Computer shareholders expect a 10.3% return

If Microsoft stockholders expect either a 25.6% return or a 1.8%

If Microsoft stockholders expect either a 25.6% return or a 1.8% return, each with a 50% probability, and Apple Computer shareholders expect a 10.3% return with certainty, what is the expected return from a portfolio comprised of equal amounts of stock from both firms? 11% 9% 12% 10%

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