Question: The following data is available for two shares Markham Ltd and Pepkor Ltd in a particular state of the economy: State of the economy Probability

The following data is available for two shares Markham Ltd and Pepkor Ltd in a particular state of the economy: State of the economy Probability of economy Share returns Markham Ltd Pepkor Ltd Slump 0,25 13% 7% Normal 0,50 15% 15% Prosperity 0,25 17% 23% The portfolio is equally weighted in share Markham Ltd and Pepkor Ltd. Calculate the expected return on the above equally weighted portfolio of shares Markham and Pepkor

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