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For the final answers, round your answer to the nearest 4 decimal places ( 3 decimals for the rewardto-risk ratio and 2 for the beta-coefficient).

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For the final answers, round your answer to the nearest 4 decimal places ( 3 decimals for the rewardto-risk ratio and 2 for the beta-coefficient). If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. Q2) There is a 28.70% probability of an average economy and a 71.30% probability of an above average economy. You invest 31.90% of your money in Stock S and 68.10% of your money in Stock T. In an average economy the expected retums for Stock S and Stock T are 10.50% and 6.80%, respectively. In an above average economy the the expected retums for Stock S and T are 26.80% and 24.70%, respectively. What is the expected retum for this two stock portfolio? (2 points)

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