You decide to invest in a portfolio consisting of 30 percent Stock A, 30 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return of your portfolio?

State of Economy	Probability of State Economy	Return if State Occurs
		Stock A	Stock B	Stock C
Boom	.24	-17.4%	-3.2%	-22.1%
Normal	.45	11.6%	7.8%	16.4%
Recession	.31	27.2%	15.1%	31.0%

Multiple Choice

• 11.52%

• 9.74%

• 10.19%

• 12.56%

• 10.63%