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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

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

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