Title: principles of investment

Question 5: Consider the following information- Economic Probability Return of Return of Stock Return of Stock conditions Stock A B C Boom 0.3 15% 20% 18% Most Likely 0.6 10% 10% 12% Recession 0.1 2% -5% -10% 12,000 36,000 Amount Invested (OMR) Calculate the expected return of the portfolio 24,000 [4 marks]