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		0.58			0.08			0.17			0.37
Bust		0.42			0.12			0.04			0.06

a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Expected return %

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. Round the final answer to 6 decimal places.)

Variance