What is the expected return for two stock portfolio

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There is a 46.90% probability of an average economy and a 53.10% probability of an above average economy. You invest 14.60% of your money in Stock S and 85.40% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 14.40% and 7.10%, respectively. In an above average economy the the expected returns for Stock S and T are 15.30% and 31.80%, respectively.

What is the expected return for this two stock portfolio?

Reference no: EM132007908

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