Going further into the previous question...

You have been asked to recommend a course of action regarding a portfolio investment in which all 3 funds are equally weighted. The scenario is as below:

Scenario Probability Rate of return Fund A Fund B Fund C

Boom 30% -7% 16% 10%

Normal 50% 12% 7% 6%

Recession 20% 26% -3% 4%

Fund D is being analyzed. Using the same scenarios the expected returns for D are 13%, 9%, -2%. If they buy Fund D, which fund should they sell?

What will be the new portfolio return?