Consider the following information:

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B	Stock C
Boom	0.74	0.11	0.27	0.27
Bust	0.26	0.11	0.13	-0.03

Requirement 1:

What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.)

(Click to select) 18.57% 11.47% 16.96% 17.85% 18.75%

Requirement 2:

What is the variance of a portfolio invested 10 percent each in A and B and 80 percent in C? (Do not round your intermediate calculations.)

(Click to select) 0.012413 0.011206 0.011792 0.013034 0.018887