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DTF Investments Ltd has a two-stock portfolio: 40% invested in Apple stock and 60% invested in Pear stock. The table below sets out the expected

DTF Investments Ltd has a two-stock portfolio: 40% invested in Apple stock and 60% invested in Pear stock. The table below sets out the expected return on the stocks for various states of the economy (returns are shown in decimals). What is the expected return of DTF Investments Ltds portfolio? Record your answer to the nearest four decimal places (e.g., If your answer is 3.40%, then report 0.0340).

State of economy

Probability

Apple Stock

Pear Stock

Boom

0.17

0.22

0.33

Normal

?

0.12

0.12

Bust

0.21

-0.14

-0.24

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