What is the expected return on a portfolio which is invested 25 percent in stock A, 55 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 5% % 19% 9% 6% Normal 45% 11% 8% % 13% Recession 5096 -23% 5% 25% Portfolio Expected Return