There is a 26.70% probability of an average economy and a 73.30% probability of an above average economy. You invest 45.00% of your money in Stock S and 55.00% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 13.20% and 10.40%, respectively. In an above average economy the the expected returns for Stock S and T are 30.50% and 26.20%, respectively. 

What is the expected return for this above two stock portfolio?

Answer rating: 100% (QA)

To calculate the expected return for the portfolio we need to f... View the full answer