18

What is the expected return on a portfolio that is equally weighted between stocks E and T given the following information?

State of Economy	Probability of State of Economy	Returns if State Occurs
		Stock E	Stock T
Boom	0.30	20%	5%
Normal	0.70	16%	8%

Group of answer choices

13.32 percent

11.86 percent

11.13 percent

14.40 percent

12.15 percent