Question: State Boom Normal Bust Probability .20 .50 .30 Return on A 20% 10% 8% Return on B 5% 8% 12% What is the expected return

State Boom Normal Bust Probability .20 .50 .30 Return on A

State Boom Normal Bust Probability .20 .50 .30 Return on A 20% 10% 8% Return on B 5% 8% 12% What is the expected return of a portfolio with 80% of the funds invested in A? 09.88% O 11.20% O 8.60% O 11.62% 0 10.84%

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