Question: Please post the formula! Not sure if i did this correctly. You are going to make a portfolio consisting of 20 % of Bank of

Please post the formula! Not sure if i did this correctly.

You are going to make a portfolio consisting of 20 % of Bank of America Stock and 80% of Caterpillar Stock. You also have the following information: State Probability of State i BOA Return Caterpillar Return Boom 60% 31% 33% Bust 40% 1-8% -8% 1.3% 103 . What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals) Answer: 19.88

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