Consider the following information:

		Rate of Return if State Occurs
State of	Probability of State
Economy	of Economy	Stock A	Stock B	Stock C
Boom	.75	.07	.01	.27
Bust	.25	.12	.19	.05

Required:

(a)	What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

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 your answer to 5 decimal places (e.g., 32.16161).)

Variance of a portfolio