2: Question 4 (2 points) Your portfolio is invested 30% in A, 50% in B, and 20% in C. What is the portfolio's expected return and the variance? Probability of State of Stock A Stock B State of e 3: Economy Return (%) Return (%) Stock C Return (%) Economy Boom 0.4 5% 35% 47% Normal 0.3 13% 25% 23% age 4:1 Recession 0.3 19% -24% -38% 4 Page 5: 5 Page 6: 6 Page 7: 7 A) Expected Return -13.76% and Variance 0.18191 B) Expected Return - 13.76% and Variance 0.24314 C) Expected Return - 13.76% and Variance = 0.05912 D) Expected Return -13.49% and Variance = 0.03309 E) Expected Return - 13.49% and Variance 0.18191