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What is the expected return for the two stock portfolio

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Problem 1: There is a 44.68% probability of an average economy and a 55.32% probability of an above average economy. You invest 34.93% of your money in Stock S and 65.07% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 11.47% and 11.40% , respectively. In an above average economy the expected returns for Stock S and T are 24.05% and 33.12% , respectively. What is the expected return for this two stock portfolio?

Reference no: EM132753431

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