What is the expected return for this two stock portfolio

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Reference no: EM131517750

There is a 21.80% probability of an average economy and a 78.20% probability of an above average economy. You invest 11.30% of your money in Stock S and 88.70% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 9.50% and 14.60%, respectively. In an above average economy the the expected returns for Stock S and T are 25.20% and 14.40%, respectively. What is the expected return for this two stock portfolio?

Reference no: EM131517750

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