Question: What is the expected return on a portfolio which is invested 15 percent in stock A, 20 percent in stock B, and the remainder in

What is the expected return on a portfolio which is invested 15 percent in stock A, 20 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 35% 5% 16% 27%
Normal 30% 18% 22% 6%
Recession 35% -16% 12% 11%

Portfolio Expected Return = %

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