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You decide to invest in a portfolio consisting of 4 0 percent Stock A , 4 0 percent Stock B , and the remainder in

You decide to invest in a portfolio consisting of 40 percent Stock A,40 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 of Economy Return if State Occurs
Stock A Stock B Stock C
Recession .23-17.0%-3.0%-21.9%
Normal .4912.0%7.6%16.2%
Boom .2826.8%14.9%30.8%

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