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State of EconomyProbability of StateReturn on JReturn on KReturn on L Boom .30 .050 .240 .300 Growth .40 .050 .120 .200 Stagnant .20 .050 .040

State of EconomyProbability of StateReturn on JReturn on KReturn on L

Boom .30 .050 .240 .300

Growth .40 .050 .120 .200

Stagnant .20 .050 .040 .060

Recession .10 .050 -.100 -.200

What is the expected return of a portfolio with 10% in Asset J,50% in Asset K and 40% in Asset L?

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