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QUESTION 12 Portfolio Expected Return when expected returns are provided Consider a portfolio with 45% invested in Stock A, 20% invested in Stock B and
QUESTION 12 Portfolio Expected Return when expected returns are provided Consider a portfolio with 45% invested in Stock A, 20% invested in Stock B and 35% invested in Stock C. The probability of a Weak Economy is 0.1, the probability of a Strong Economy is 0.1, and the probability of an Average Economy is 0.8 Stock A has an expected return of 6.8% Stock B has an expected return of -3.4% Stock C has an expected return of 4.8% Read the information above carefully. First create a table that summarizes the information above Solve for the Expected Return of the Portfolio Include your answer as a percentage to two decimals and with a negative if appropriate
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