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	0.19	0.13	0.15
Bust	0.36	0.11	0.13	0.01

Requirement 1:

What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.)

(Click to select)13.03%15.53%25.06%27.83%7.30%

Requirement 2:

What is the variance of a portfolio invested 30 percent each in A and B and 40 percent in C? (Do not round your intermediate calculations.)

(Click to select)0.0049750.0091750.0014750.0094750.006975