1. A portfolio consists of the following three stocks, whose performance depends on the economic environment. Stock Investments ($) Good Bad 1 500 +13% 20% 2 1, 250 +6% +3% 3 250 7% +2% Assuming that the good economic environment is twice as likely as the bad one, compute the expected return and variance of the portfolio. What if $1, 000 of stock 4, which has mean return of 4%, a variance of 0.02, and is uncorrelated with the preceding portfolio, is added to the portfolio? How will this change the expected return and variance of the total investment