You have a portfolio which is comprised of 55 percent of stock A and 45 percent of stock B. What is the expected return on this portfolio?State of the EconomyProbabilityE(R) AE(R) BWeight 55%45%Boom0.1519%12%Normal0.6511%7%Recession0.20-16%1%
A. 5.45 percent
B. 8.22 percent
C. 7.14 percent
D. 7.60 percent
E. 6.69 percent
Answer: E
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