Question: What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? State

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? State of Probability of Economy State of Boom Normal Recession Economy 20% 70% 10% Returns if State Occurs Stock A 18% 11% -10% Stock B 9% 7% 4% Stock C 6% 9% 13%

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