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What Is the Expected Return on a Portfolio Comprised of $4,000

question 102

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What is the expected return on a portfolio comprised of $4,000 in stock M and $6,000 in stock N if the economy enjoys a boom period?
 State of  Probability of  Returns if State Occurs  Economy  State of Economy StockMStock NBoom 10%18%10% Normal75%7%8% Recession 15%20%6%\begin{array}{llcc} \text { State of } & \text { Probability of } & \underline{\text { Returns if State Occurs }} \\\underline{ \text { Economy }} & \underline{\text { State of Economy }} & \underline{\text {StockM\quad Stock N}} \\ \text {Boom } & 10\% &18\% \quad \quad 10\%\\ \text { Normal} & 75\%& 7\%\quad \quad8\%\\\text { Recession }&15\%&-20\%\quad \quad6\%\\\end{array}

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Definitions:

Response Substitution

A phenomenon whereby one inappropriate behavior is suppressed and another inappropriate behavior occurs.

Suppression

The act of stopping or inhibiting something from occurring, often referring to behaviors, thoughts, or emotional expressions.

Throwing Furniture

An example of an extreme behavioral response, often used in discussions about managing challenging behaviors in environments such as classrooms or therapeutic settings.

Response Cost

A type of behavior modification technique that involves removing a reward or positive reinforcement to decrease unwanted behaviors.

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