QUESTION 5 Use the following information to answer questions 5 through 7: State of Probability Returns Economy of State Stock A Stock B Stock C Boom prob-10 22 % 18 % 5 % Normal prob=.85 14% 13% 11% Recession prob=05 -28% 4% 17% You have a portfolio that is equally weighted among stocks A, B, and C. What is the expected return on your portfolio? 2 11.87 percent 12.15 percent 12.22 percent 12.48 percent