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		.54			.12			.20			.38
Bust		.46			.14			.04			- .07

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

Expected return=

%

b.	What is the variance of a portfolio invested 18 percent each in A and B and 64 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places. (e.g., 32.161616))

Variance=