Question 7 Expected Return Portfolio Expected Return State (i) Recession Neutral Boom E(R) P() 0.50 0.25 0.25 Stock A E(Ra) p(i) x E(Ra) -10% 5% 40% E(R) E(Rb) 20% 5% -15% Stock B p(i) x E(Rb) Using the table above, determine (Mark your answers A, B, C): A) Expected Return for Stock A B) Expected Return for Stock B C) Expected Percent Return for a portfolio that is $10,000 Stock A & $30,000 Stock B

Question 7 Expected Return Portfolio Using the table above, determine (Mark your answers A, B, C): A) Expected Return for Stock A 3) Expected Return for Stock B C) Expected Percent Return for a portfolio that is $10,000 Stock A \& $30,000 Stock B