1. Your portfolio consists of two assets, P and Q. You have invested $2750 in P and $4880 in Q. The projected returns for these two assets in the next year are: Boom Normal Recession Probability 0.3 0.5 0.2 Return of P 0.25 0.15 0.04 Compute the expected return of your portfolio during the next year. A) E(R) = 15.8%; E(R) = 21.7% B) E(R) = 15.8%; C) E(R) = 4.0%; D) E(R) = 35.0%; E(R) = 25.0% E(R) = 21.7% E(R) = 20.0% Return of Q 0.35 0.20 0.06