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Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Stock A Economy Boom Bust .56 .13

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Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Stock A Economy Boom Bust .56 .13 Stock B .21 Stock C 39 .44 .15 .05 -.06 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) a. Expected return b. Variance %

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