What is the expected return on a portfolio

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Given the formula information. What is the expected return on a portfolio which is invested 40% in stock X and 60% in stock y?

State of Economy Prob    Stock X    Stock Y

Boom            10%   25%          -17%

Normal                   70%    10%          7%

Recession               20%    -15%        30%

6.5%

7.8%

8.1%

9.2%

Reference no: EM132084369

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