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The following returns have been estimated for Security T and Security S: Scenario Security T Security S 1 20% 10% 2 13% -6% 3 15%
The following returns have been estimated for Security T and Security S:
Scenario | Security T | Security S |
1 | 20% | 10% |
2 | 13% | -6% |
3 | 15% | 20% |
Each scenario is equally likely to occur, and you plan to invest 70% in Security T and 30% in Security S. What is the expected return of the portfolio? Round your answer to the nearest tenth of a percent.
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