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Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will

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Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. The company is investing 60% in stock A and 40% in stock B. What is its expected return (portfolio return)? Economic Conditions Prob. R. R Strong 30% 40.0% 20.0% Normal 40% 10.0% 10.0% Weak 30% -16.0% -6.0%

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