Question: Question 26 (3.3 points) There are two stocks in a portfolio and two possible states of economy that may occur. The relevant information is summarized

Question 26 (3.3 points) There are two stocks in a portfolio and two possible states of economy that may occur. The relevant information is summarized as follows (the given information is the same as in the previous question): Stock return if a certain state of economy occurs State of Economy Probability Stock 1 Stock 2 Good 0.50 8% 15% Bad 0.50 4% -7% Initial Investments $6,000 $4,000 What is the expected return on this portfolio? OA) 8.8 B) 5.2% C) 10.4% D) 3.6

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