Sam Tsantes has analyzed two stocks: Acme Airlines and Ajax Travel Associates. His analysis concludes that Acme has a

20%

change of producing a return of

10%

and a

80%

chance of producing a return of

15%

. As the same time Ajax has a

40%

chance of losing

25%

and a

60%

chance of producing a return of

50%

. If same invests

$70,000

in Acme shares and

$30,000

in Ajax shares, the expected return on the portfolio will be closet to:\

1-14.0%\ 2-18.2%\ 3-20.0%\ 4-15.8%

Sam Tsantes has analyzed two stocks: Acme Airlines and Ajax Travel Associates. His analysis concludes that Acme has a 20% change of producing a return of 10% and a 80% chance of producing a return of 15%. As the same time Ajax has a 40% chance of losing 25% and a 60% chance of producing a return of 50%. If same invests $70,000 in Acme shares and $30,000 in Ajax shares, the expected return on the portfolio will be closet to: 114.0%218.2%320.0%415.8%