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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

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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? Probability of State of Economy Return if State Occurs State of Economy Stock C Stock A Stock B -2.8 % 7.4% -21.7 % -16.6% .20 d Recession 12.4% 16.e% .53 Normal 30.6% 26.4% 14.7% .27 Boom

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