Question 4 4 pts You plan to invest in assets A and B, and hope your portfolio to have an expected return of 8.6%. How should you allocate your money on A and B? O 40% in A and the rest in B. O 86% in A and the rest in B. O 14% in A and the rest in B. O 80% in A and the rest in B. O 30% in A and the rest in B. Use the following information to answer question 1--4. Suppose there are three potential states of the economy for next year: good, normal, and bad. Each state has equal probability to occur, that is, the probability is 1/3 for all of them. Returns of asset A and B in each state are given in the following table. good normal bad A 0.20 0.08 -0.01 B 0.151 0.10 -0.04 Find out the expected return of asset A and asset B. 8% for both A and B 9% for A and 7% for B O 10% for A and 8% for B 20% for A and 15% for B O 5% for A and 6% for B