You have decided to invest $70,000 in Stock Fund, and $30,000 in Bond. The returns for each fund are forecasted below: Fill in the portfolio’s forecasted return for a strong economy and a weak economy. Then calculate the expected return for the portfolio.
Economy (Probalility) Stock Fund Return Bond Fund Return Portfolio Return
Strong (65%) 16% 2% ____
Weak (35%) -12% 7% ___
Expected return portfolio___________