You are going to make a portfolio consisting of 70 % of Wizards of the Coast stock and 30 % of Lionsgate Stock. You also have the following information:
State i Probability of State i WOC Return Lionsgate Return
Boom 30 % 12 % 38 %
Bust 70 % 8 % 8 %
What is the expected return for the portfolio?
a. 14.30 %
b. 11.54%
c. 13.94%
d. 10.19%
e. 9.34%