Question: There is a 2 7 . 3 0 % probability of an average economy and a 7 2 . 7 0 % probability of an

There is a 27.30% probability of an average economy and a 72.70% probability of an above average economy. You invest 13.70% of your money in Stock S and 86.30% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 13.40% and 11.00%, respectively. In an above average economy the the expected returns for Stock S and T are 18.50% and 33.40%, respectively. What is the expected return for this two stock portfolio?

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