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An analyst expects to see only 3 possible economy conditions next year: recession (prob: 22%), normal (prob: 48%), and boom (prob: 30%). The portfolio that
An analyst expects to see only 3 possible economy conditions next year: recession (prob: 22%), normal (prob: 48%), and boom (prob: 30%). The portfolio that the analyst is managing will yield -12% return in recession, 14% return in normal, and 33% return in boom. What is the expected return of the portfolio? 1) 0.1398 2) 0.1458 3) 0.1258 4) 0.1138
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