What is the expected return on a portfolio

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Question - What is the expected return on a portfolio which is invested 20% in Stock A, 50% in Stock B and 30% in Stock C? Identify all numbers and show all work.

State of Economy

Probability of State of Economy

Returns if State Occurs

Stock A

Stock B

Stock C

Boom

20%

18%

9%

6%

Normal

70%

11%

7%

9%

Recession

10%

-10%

4%

13%

Reference no: EM131772034

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