Question: What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom

What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?


What is the expected return on a portfolio comprised of


A. 6.40%
B. 6.80%
C. 10.40%
D. 13.20%
E.14.00%

Returns if State Occurs Stock M StockN State of Econom Boom Normal Recession Probability of State of Economv 10% 75% 15% 10% 8% 60% 18% -20%

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