What does the cost-benefit principle state?
a. that consumers should only demand goods that benefit them
b. that businesses should only supply goods that benefit consumers
c. that an action should be taken if the benefit of taking it is less than the cost
d. that an action should be taken if the benefit of taking it is greater than the cost

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 %