Question: The information below is used to answer the next question: Probability of Occurrence Stock A Expected Return Stock B Expected Return State of the Economy

The information below is used to answer the next question: Probability of Occurrence Stock A Expected Return Stock B Expected Return State of the Economy Expansion Stable Recession 20% 50% 30% 25% 15% -5% 35% 25% -15% 34. Given the following forecasts, what is the expected return for a portfolio that has $1,500 invested in Stock A and $4,500 invested in Stock B? a. 12.0% b. 12.5% C. 14.0% d. 14.2%

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