Question: please make sure your answer is a given answer choice You decide to invest in a portfolio consisting of 25 percent Stock A, 25 percent
You decide to invest in a portfolio consisting of 25 percent Stock A, 25 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio? State of Economy Return if State Occurs Probability of State of Economy Stock A Stock B Stock C Recession 0.18 16.0% 26% 21.5% Normal 0.54 12.4% 7.2% 158% Boom 0.28 11.22% 145% 30.4% 11.22% 14.47% 12.24% 13.26% 11.73%
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