In the mid-1990s, the fear that machines would eventually eliminate many jobs—mainly those involved in processing or analyzing information—was not uncommon. However, instead of being a cause for alarm, it turned out to be a positive transition because by 2008, more than 20 million new jobs were created.

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 %