Question: O 8 29 The following table reports forecasted returns for the stock of two different companies under three possible states of the economy: State Probability

O 8 29 The following table reports forecasted returns for the

O 8 29 The following table reports forecasted returns for the stock of two different companies under three possible states of the economy: State Probability Stock A Stock B Expansion 25% 13.87% 17.83% Average 40% 8.60% 6.31% Recession 35% 1.44% -4.28% What is the expected return on a portfolio that consists of 70% of funds allocated to Stock A and the rest in Stock B? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)

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