58.

Boom 15% 18% Normal Recession 60% 11% -10% 25% A. 6.3% B. 6.8% C. 7.6% D. 10.0% E. 10.8% 58. What is the expected return on a B, and 30% in stock C? portfolio which is invested 20 % in stock A, 50% in stock Probability of State of Economy Returns if State Occurs State of Stock A Stock B Stock C Economy Boom 6% 9% 18% 20% 9% 7% 11% 70% Normal 13% 4% -10% 10% Recession A. 7.40% B. 8.25% C. 8.33% D. 9.45% E. 9.50% 59. What is the portfolio variance if 30% is invested in stock S and 70% is invested in stock T? State of Returns if State Occurs Stock T Probability of Stock S