Quiz 11: Risk and Return What is the expected return on a portfolio which is invested 25 percent in stock A, 60 percent in stock B, and the remainder in stock C? State of Economy Probability of State Return if State Occurs Stock A Stock B Stock Boom 45% 1% 18% 33% Normal 10% 20% 26% 4% Recession 45% -14% 14% 796 Portfolio Expected Return = % Altaminte