12. Given the following information about the returns of stocks A, B, and C, what is...

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12. Given the following information about the returns of stocksA, B, and C, what is the expected return of a portfolio invested30% in stock A, 40% in stock B, and 30% in stock C?
State of economy Probability Stock A Stock B Stock C
Boom 0.19 0.36 0.21 0.39
Good 0.23 0.23 0.22 0.23
Poor 0.25 0.06 0.07 0.06
Bust -- -0.14 -0.1 -0.21
Enter answer in percents.

State of economy	Probability	Stock A	Stock B	Stock C
Boom	0.19	0.36	0.21	0.39
Good	0.23	0.23	0.22	0.23
Poor	0.25	0.06	0.07	0.06
Bust	--	-0.14	-0.1	-0.21

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Expected return Summation of percentage invested in the stockStock return Given that the percentage of investment in stock A30 stock B40 and stock C30 In boom state of economy the returns on stock A36 stock See Answer

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12. Given the following information about the returns of stocksA, B, and C, what is the expected return of a portfolio invested30% in stock A, 40% in stock B, and 30% in stock C?State of economyProbabilityStock AStock BStock CBoom0.190.360.210.39Good0.230.230.220.23Poor0.250.060.070.06Bust---0.14-0.1-0.21Enter answer in percents.