Given the formula information what is the expected return
Given the formula information. What is the expected return on a portfolio which is invested 40% in stock X and 60% in stock y?
State of Economy Prob Stock X Stock Y
Boom 10% 25% -17%
Normal 70% 10% 7%
Recession 20% -15% 30%
6.5%
7.8%
8.1%
9.2%
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