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Hello Investment Ltd has an equally weighted two share portfolio. The table below sets out the expected returns on the shares for various states of

Hello Investment Ltd has an equally weighted two share portfolio. The table below sets out the expected returns on the shares for various states of the economy. (returns are shown in decimals). What is the expected return of Hello Investment Ltd.s portfolio? Record your answer in decimals and to four decimal places 0.0000, e.g., your answer should be 0.034 not 3.40%

State of economy Probability Share Gama Share Delta
Boom 0.23 0.16 0.3
Normal ? 0.13 0.11
Bust 0.22 -0.09 -0.16

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