What is the expected return (expressed in %) of a portfolio that has $7500 in Stock M and $5000 in Stock N? Assume the following three scenarios: Recession (with 15% probability), Normal (with 70% probability), boom (with 15% probability).The returns on Stock M in each scenario are the following:-12% in Recession, 6% in Normal, 12% in Boom. The returns on Stock N in each scenario are the following:10% in Recession, -2% in Normal, 5% in Boom.

Question 1 options:

	4.32
	3.19
	1.98
	2.86

An analyst who relies upon past cycles of stock pricing to make investment decisions is:

Question 2 options:

	performing fundamental analysis.
	relying upon the strong-form of market efficiency.
	assuming that the market is not weak-form efficient.
	relying upon the random walk of stock prices.