The point on the production possibilities curve that is most desirable can be found by: a. calculating where economic growth will be greatest. b. estimating the marginal costs of both products in real or physical terms. c. determining where least-cost production occurs. d. comparing marginal benefits and marginal costs.

You decide to invest in a portfolio consisting of 25 percent stock a, 25 percent stock b, and the remainder in stock c. based on the following information, what is the expected return of your portfolio? state of economy probability of state return if state occurs of economy stock a stock b stock c recession .16 - 16.4 % - 2.7 % - 21.6 % normal .55 12.6 % 7.3 % 15.9 % boom .29 26.2 % 14.6 % 30.5 %