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Given the following information about the returns of stocks A, B, and C, what is the...

Given the following information about the returns of stocks A, B, and C, what is the expected return of a portfolio invested 30% in stock A, 40% in stock B, and 30% in stock C?

State of economy Probability Stock A Stock B Stock C
Boom 0.16 0.35 0.2 0.25
Good 0.29 0.17 0.2 0.13
Poor 0.21 0.01 0.03 0.08
Bust -- -0.16 -0.19 -0.18

Enter answer in percents.

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weighted return (weight x return) state of econom rate of return if state occurs weighted sum probability expected return Sto

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