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2. (10pts) Let A(0) = 100, A(1) = 105, S(0) = 90 and S(1) = { 100, with probability 80, with probability. Suppose a portfolio

2. (10pts) Let A(0) = 100, A(1) = 105, S(0) = 90 and S(1) = { 100, with probability 80, with probability. Suppose a portfolio has 50 shares of stock and 40 shares of risk-free bond. Find expected return of the portfolio at t = 1

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