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18- Consider the following three state of the worlds (bad, average, and good) and the performance for CD Return, Government Bonds, and Stocks. State CD

18-

Consider the following three state of the worlds (bad, average, and good) and the performance for CD Return, Government Bonds, and Stocks.

State CD Return Bond Return Stock Return
1. Good 2% 4% 15%
2. Average 2% 3% 7%
3. Bad 2% 1% -5%

I followed my financial advisors recommendation to purchase 60% stocks, 25% bonds, and 15% CDs. What is my return in a bad state of the world? (round to two digits, e.g. 5.18%)

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