Question: QUESTION 11 Portfolio Expected Return Consider a portfolio with 45% invested in Stock A, 20% invested in Stock B and 35% invested in Stock C.

 QUESTION 11 Portfolio Expected Return Consider a portfolio with 45% invested

QUESTION 11 Portfolio Expected Return Consider a portfolio with 45% invested in Stock A, 20% invested in Stock B and 35% invested in Stock C. The probability of a Weak Economy is 0.1, the probability of a Strong Economy is 0.1, and the probability of an Average Economy is 0.8 Stock A pays 2.1% in a Weak Economy, -2.9% in a Strong Economy, and -4.2% in an Average Economy Stock B pays 4.3% in a Weak Economy, 8.2% in a Strong Economy, and 5.2% in an Average Economy Stock C pays -2.4% in a Weak Economy, 3.8% in a Strong Economy, and 2.2% in an Average Economy Read the information above carefully. First create a table that summarizes the information above Then solve for the Expected Return of the Potfolio Include your answer as a percentage to two decimals and with a negative if appropriate

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