Consider the following information:

Rate of Return if State Occurs

Requirement 1: What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.)

17.48%, 19.98%, 29.51%, 32.28%, 11.75%

Requirement 2: What is the variance of a portfolio invested 30 percent each in A and B and 40 percent in C? (Do not round your intermediate calculations.)

0.012031, 0.016531, 0.014031, 0.008531, 0.016231

Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.68 0.32 Stock A 0.17 0.07 Stock B 0.31 0.07 Stock C 0.23 -0.01