Question: If Microsoft stockholders expect either a 25.6% return or a 1.6% return, each with a 50% probability, and Apple Computer shareholders expect a 10.1% return

If Microsoft stockholders expect either a 25.6% return or a 1.6% return, each with a 50% probability, and Apple Computer shareholders expect a 10.1% return with certainty, what is the expected return from a portfolio comprised of equal amounts of stock from both firms?

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