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1) Consider the portfolio below. It is 25% invested in Stock A and C, and 50% invested in Stock B. What is the expected

1) Consider the portfolio below. It is 25% invested in Stock A and C, and 50% invested in Stock B. What is the expected return of the portfolio? Returns Probability of State of Economy State of Economy Stock A Stock B Stock C Boom 0.1 18% 48% 33% Good 0.3 11% 18% 15% Poor 0.4 5% -5% Bust 0.2 -3% -32% 9% 2) What is the variance of the same portfolio?

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