The following information is available for three different stocks

State of Economy

Probability

A

B

C

Boom

0.35

20

35

60

Normal

0.4

15

12

5

Bust

0.25

1

-25

-50

What is the expected return on the portfolio?

If your portfolio is invested 40% in stock A and B and 20% in C. (5 Marks)

If the assets are equally distributed in the portfolio (