Consider the following information on a portfolio of three stocks: State of Economy Probability of...

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Consider the following information on a portfolio of three stocks: State of Economy Probability of State of Economy Stock A Rate of Return .02 Stock B Rate of Return .32 .12 Stock C Rate of Return .60 .20 .15 Boom Normal Bust .10 .60 .25 .16 -11 -35 If your portfolio is invested 30 percent each in A and B and 40 percent in C, what is the portfolio's expected return? 10.30% 9.25% 12.25% 10.77% None of the above

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