What is the expected return on a portfolio comprised of $\mathrm { C } , 000$ in share M and

in share N if the economy enjoys a boom period?
$\begin{array} { | l | l | l | l | }
\hline & & \text { Returns if State Occurs } \
\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share M } & \text { Share N } \
\hline \text { Boom } & 10 \% & 18 \% & 10 \% \
\hline \text { Normal } & 75 \% & 7 \% & 8 \% \
\hline \text { Recession } & 15 \% & - 20 \% & 6 \% \
\hline
\end{array}$
A)6.4%
B)6.8%
C)10.4%
D)13.2%
E)14.0%

Question

What is the expected return on a portfolio comprised of $\mathrm { C } , 000$ in share M and

in share N if the economy enjoys a boom period?
$\begin{array} { | l | l | l | l | } 
\hline & & \text { Returns if State Occurs } \
\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share M } & \text { Share N } \
\hline \text { Boom } & 10 \% & 18 \% & 10 \% \
\hline \text { Normal } & 75 \% & 7 \% & 8 \% \
\hline \text { Recession } & 15 \% & - 20 \% & 6 \% \
\hline
\end{array}$
A)6.4% 
B)6.8% 
C)10.4% 
D)13.2% 
E)14.0%

Quizplus · Accepted Answer

The Answer of What is the expected return on a portfolio comprised of $\mathrm { C } , 000$ in share M and

in share N if the economy enjoys a boom period?
$\begin{array} { | l | l | l | l | } 
\hline & & \text { Returns if State Occurs } \
\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share M } & \text { Share N } \
\hline \text { Boom } & 10 \% & 18 \% & 10 \% \
\hline \text { Normal } & 75 \% & 7 \% & 8 \% \
\hline \text { Recession } & 15 \% & - 20 \% & 6 \% \
\hline
\end{array}$
A)6.4% 
B)6.8% 
C)10.4% 
D)13.2% 
E)14.0%

What Is the Expected Return on a Portfolio Comprised Of \mathrm