101 9. Returns and Standard Deviations. Consider the f L0 1 ollowing information: L0 2 State of Economy Probability of State of Economy Rate of Return If State Occurs Stock B Stock C Stock A Boom Bust 60 .40 .15 03 .02 .16 .34 -.08 What is the expected return on an equally weighted portfolio of these three stocks? a. hat is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? b. W