Question: Please do Q.10 and shows full steps, thanks Use the following information to answer questions #9 and #10. State Probability Return on A Return on

Please do Q.10 and shows full steps, thanks

Please do Q.10 and shows full steps, thanks Use the following information

Use the following information to answer questions #9 and #10. State Probability Return on A Return on B Boom .65 30% 5% Bust .35 10% 20% X 9. What is the expected return on a portfolio that is 70% invested in A and 30% invested in B? A) 14.13% B) 15.92% (0.65 x 30% + 0.35x10%) x70% (19.18% (0.65 x 5% + 0.35 x 4%) x 30% D) 22.47% + . 10. What is the expected return on a portfolio that equally-weighted amongst A, B, and the risk-free asse The risk free rate is 5%. A) 9.25% B) 12.75% 57. C) 14.50% D) 16.33%

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