Consider the following information:
		Rate of Return if State Occurs
State of Economy	Probability of	Stock A	Stock B	Stock C
	State of Economy
Boom	0.72	0.05	0.25	0.07
Bust	0.28	0.13	0.09	0.01
a. What is the expected return on an equally weighted portfolio of these three stocks?
b. What is the variance of a portfolio invested 30 percent each in A and B and 40 percent in C?