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Portfolio Expected Return when expected returns are provided Consider a portfolio with 45% invested in...

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Finance

Portfolio Expected Return when expected returns are provided

Consider a portfolio with 45% invested in Stock A, 20% invested in Stock B and 35% invested in Stock C.

The probability of a Weak Economy is 0.1, the probability of a Strong Economy is 0.1, and the probability of an Average Economy is 0.8

Stock A has an expected return of 7.5%

Stock B has an expected return of -2.5%

Stock C has an expected return of 5.9%

Read the information above carefully.

First create a table that summarizes the information above

Solve for the Expected Return of the Portfolio

Include your answer as a percentage to two decimals and with a negative if appropriate

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