Q1. Currently, the risk-free return is 3 percent, and the expected market rate of return is 9 percent. What is the expected return of the following three-stock portfolio? Probability $350,000 250,000 400,000 Payoff 1.0 0.2 2.5

Currently, the risk-free return is 3 percent, and the expected market rate of return is 9 percent. What is the expected return of the following three-stock porttolio