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	.75	.07	.18	.27
Bust	.25	.12	.08	.21

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

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?

Note: Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.