Please solve the following problems using the long method with formulas. (Do not solve using the calculator functions for Data and Stat). Please show all calculations and not just the answer.

4. Calculate the expected return on the portfolio that has invested 30% is stock A, 40% in stock B; and 30% in stock C.

		Rate of Return in each State
State of Economy	Probability	Stock A (%)	Stock B (%)	Stock C (%)
Boom	4%	18.4	11.4	26.1
Normal	93%	9.6	7.9	17.6
Recession	3%	3.8	4.6	-28.7