A stock has an expected return of 17 percent, its beta is 1.4, and the expected return on the market is 13 percent. What must the risk-free rate be? Multiple Choice -1.20% 3.12% 3.00% 2.85% 3.15% Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.70 0.30 Stock A 0.21 0.09 Stock B Stock C 0.25 0.29 0.15 -0.03 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 30 percent each in A and B and 40 percent in C