Question: What is the expected return on a portfolio that is invested 25% in stock A, 55% in stock B, and the remainder in stock C?

What is the expected return on a portfolio that is invested 25% in stock A, 55% in stock B, and the remainder in stock C?

State Probability Stock A Stock B Stock C
Boom 5% 19% 9% 6%
Normal 45% 11% 8% -13%
Recession 50% -23% 5% 25%

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