3. Suppose you have invested in three stocks: A, B and C. You expect that returns on the stocks depend on the following two states of the economy, with the probabilities to happen given below. (8) State of Probability of Return on Retum on Return on Economy State stock A stock B stock Occurrence Boom 0.60 6% 15% 33% Inflation 4% 3% -6% a)What is the expected return of an equally weighted portfolio of these three stocks? b) What is the expected return of a portfolio invested 20 percent each in A and B, and 60 percent in C? 0.40