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What Is the Expected Return on a Portfolio Which Is \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad

Question 66

Multiple Choice

What is the expected return on a portfolio which is invested 20% in share A,50% in share B,and 30% in share C?
\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad Rate of Retulil if
\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad State Occur:
 State of Economy  Probability of State of Economy  Share A  Share B  Share C  Boom 20%18%9%5% Normal 70%11%7%9% Recession 10%10%4%13%\begin{array}{|l|l|l|l|l|}\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share A } & \text { Share B } & \text { Share C } \\\hline \text { Boom } & 20 \% & 18 \% & 9 \% & 5 \% \\\hline \text { Normal } & 70 \% & 11 \% & 7 \% & 9 \% \\\hline \text { Recession } & 10 \% & -10 \% & 4 \% & 13 \% \\\hline\end{array}


A) 7.40%
B) 8.25%
C) 8.33%
D) 9.45%
E) 9.50%

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