Economy probability of state of economy stock

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A portfolio consists of 20 percent Stock A, 50 percent Stock B, and 30 percent Stock C. What is the portfolio expected return given the following:

State of Economy Probability of State of Economy Stock A Returns Stock B Returns Stock C Returns

Normal 0.75 12% 5% 18%

Recession 0.25 –2 11 –24

Reference no: EM13976753

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