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Questions 13-15 are based on the information that follows: You are given the following information on Stock A, Stock B and on the market portfolio.
Questions 13-15 are based on the information that follows: You are given the following information on Stock A, Stock B and on the market portfolio. The return on the riskless asset is 5%. State of Economy RA RB RM Pr. Good .38 .25 .20 .50 Bad .12 .08 14 .35 Crisis -.08.04 -.03.15 15. You form a portfolio that is allocated 60% to the market portfolio and 40% to the risk-free asset. Your expected rate of return is
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