2. Based on the scenarios below, what is the expected return for a portfolio with the following return profile?

Market Condition Bear Normal Bull Probability .2 .3 .5 Rate of return –25% 10% 24%

Use the following scenario analysis for Stocks X and Y to answer CFA Problems 3 through 6 (round to the nearest percent).

Bear Market Normal Market Bull Market Probability 0.2 0.5 0.3 Stock X –20% 18% 50%

Stock Y –15% 20% 10%