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		.68			.13			.22			.40
Bust		.32			.10			.04			.08

1. What is the expected return on an equally weighted portfolio of these three stocks? Expected Return %

2. What is the variance of a portfolio invested 24 percent each in A and B and 52 percent in C?

What the variance