You have the following data on a portfolio. You have decided to invest 11% of your money in Asset A and 89% in Asset B. Find the return on your portfolio. Asset Returns in Bust and Boom Economy Probability Return A Bust 13% 17% Boom 87% 20% Return B 5% 36%

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Q: 3. Consider assets A and B with expected returns of E(RA)=12% and E(RB)=20% and standard deviations…

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A: EXPECTED RETURN FORMULA: EXPECTED RETURN =∑n pn×rnwhere,n=scenariopn=probabilityrn= return

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