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Please see portfolio composition below: Probability 0.36 0.17 0.18 0.27 Return -12% 13% 17% 11% What is the expected return f

SOLVE THE PROBLEM STEP BY STEP THE ANSWER IS 3.9%

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Answer #1

expected return = sum of (probability * return)

= 0.36 * -12% + 0.17 * 13% + 0.18*17% + 0.27 * 11%

= 3.92%

= 3.9%

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