What is the expected return on a portfolio comprised of


What is the expected return on a portfolio comprised of $5,000 invested in stock A and $5,000 invested in stock B (in percent)?

STATE PROBABILITY RETURN % (A) RETURN % (B)

Boom 0.50 30 50

Normal 0.50 10 10

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Finance Basics: What is the expected return on a portfolio comprised of
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