An analyst has predicted the following returns for Stock A and Stock B is three possible states of the economy.

State Probability A B Boom .23 .22 .22 Normal .40 .19 .16 Recession ??? .17 .10

a) What is the probability of a recession?

b) Calculate the expected return of Stock A. (Round your answer to 4 decimal places, and express as a percent. Do NOT include the % sign. .87643 would round to .8764. This number expressed as a percent is 87.64%. You would type 87.64 as your answer.)

c) Calculate the expected return of Stock B. (Round your answer to 4 decimal places, and express as a percent. Do NOT include the % sign. .87643 would round to .8764. This number expressed as a percent is 87.64%. You would type 87.64 as your answer.)

d) Calculate the expected return of a portfolio that is invested 56% in Stock A and 44% in Stock B. (Round your answer to 4 decimal places, and express as a percent. Do NOT include the % sign. .87643 would round to .8764. This number expressed as a percent is 87.64%. You would type 87.64 as your answer.)