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You decide to invest in a portfolio consisting of 40 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 40 percent Stock A, 30 percent Stock B, and the remainder in Stock C. Based on the following information, what is the expected return your portfolio? Probability of State of Economy .26 46 .28 Retum If State Occurs State of Economy Recession Normal Boom Stock B Stock C 207% 15.0% 29,6% Stock A 14.6% 10.8% 24.4% 1.8% 6.4% 13.7% 8.04% 9.50% 8.77% 10.36% 8.40%

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