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? A)

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

What is the expected return on a portfolio which is invested 20%

A) 7.4%

B) 8.25%

C) 8.33%

D) 9.45%

E 9.5%

State of Economy Boom Normal Recession Probability of State of Economy 20% 70% 10% Returns if State Occurs Stock A Stock B Stock 18% 9% 6% 11% 7 -10% 4% 13% 9%

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