What is the expected return for this two stock portfolio

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There is a 36.59% probability of an average economy and a 63.41% probability of an above average economy. You invest 19.98% of your money in Stock S and 80.02% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 12.92% and 15.00% , respectively. In an above average economy the the expected returns for Stock S and T are 32.06% and 12.75% , respectively. What is the expected return for this two stock portfolio?

Reference no: EM131527111

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