What is the expected return of a portfolio

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Reference no: EM131602261

State probablity Return on A Return on B

Boom .20 20% 5%

Normal .50 10% 8%

Bust .30 8% 12%

What is the expected return of a portfolio with 80% of the funds invested in A?

Answer Choices: 11.62, 8.60, 11.20, 9.88, 10.84

Reference no: EM131602261

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