Consider the following information:

		Rate of Return If State Occurs
State of	Probability of
Economy	State of Economy	Stock A	Stock B	Stock C
Boom		.56			.06			.14			.34
Bust		.44			.15			.05			.04

a.	What is the expected return on an equally weighted portfolio of these three stocks?

Expected return

%

b.	What is the variance of a portfolio invested 22 percent each in A and B and 56 percent in C?

Variance