Use the following information to answer Part C

State of Economy	Probability	ABC Company Expected Return	XYZ Company Expected Return
Very Poor	0.1	-15%	-9%
Poor	0.1	-8%	-8%
Good	0.1	14%	14%
Very Good	0.7	34%	23%
Expected Return		22.9%	15.8%

A) Calculate the expected return of the portfolio if 40% is invested in XYZ. (1 Mark) Please answer as a decimal to 4 decimal places.