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? Please

What is the expected return on a portfolio which is invested 20% in stock A, 50% in stock B, and 30% in stock C? Please show results.

State of

Economy

Probability of State

Returns if State Occurs

of Economy

Stock A

Stock B

Stock C

Boom

.20

.18

.09

.06

Normal

.70

.11

.07

.09

Recession

.10

-.10

.04

.13

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