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Base on the table above, you invested 40% on Stock A and B and 20% on Stock C. Calculate the expected return on this portfolio.

  1. Base on the table above, you invested 40% on Stock A and B and 20% on Stock C. Calculate the expected return on this portfolio. (10 marks

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State of economy Probability Rate of returns Boom Normal Bust 0.35 0.50 0.15 Stock A 0.24 0.17 0 Stock B 0.36 0.13 0.28 Stock C 0.55 0.09 0.45

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