Question: What is the expected return on a portfolio which is invested 20 percent in stock A, 10 percent in stock B, and the remainder in

What is the expected return on a portfolio which is invested 20 percent in stock A, 10 percent in stock B, and the remainder in stock C?

State of Economy Probability of State Return if State Occurs
Stock A Stock B Stock C
Boom 40% 3% 17% 30%
Normal 20% 19% 24% 5%
Recession 40% -15% 13% 9%

Portfolio Expected Return = %

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