a) Consider the following information: Rate of Retur State Boom Probability of State 0.65 Stock X 0.07 Stock Y 0.15 Stock z 0.33 Bust 0.35 0.13 0.03 0.06 a. What is the expected retum on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20% each in X and Y and 60% in Z? 2 (25 marks) a) Bond Values of Corporation bond has a 10% coupon rate and a $1,000 face value. Interest is paid semiannually, and the bond has 20 years to maturity. If investors require a 12% yield, what is the bond's value? What is the effective annual yield on the bond