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Suppose you invest 40% of your fund in stock A and the other 60% in stock B. If stock A and B are expected to

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Suppose you invest 40% of your fund in stock A and the other 60% in stock B. If stock A and B are expected to have the following returns next year, then what are the expected returns for Stock A, Stock B and your portfolio? Probability Stock A Stock B State of Economy Recession .3 -12% 2% Boom .7 25% 6% 10.2%; 4.8%; 10.26% 13.9%; 4.8%; 8.44% 10.2%; 4.4%; 8.44% 13.9%; 4.8%; 10.26%

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