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 0.64 0.27 0.13 0.15

Bust 0.36 0.13 0.07 0.17

Requirement 1: What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.) Requirement 2: What is the variance of a portfolio invested 10 percent each in A and B and 80 percent in C?