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Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.78 0.22 Stock A 0.25

Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy 0.78 0.22 Stock A 0.25 0.19 Stock B Stock C 0.17 0.13 0.19 -0.05 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 30 percent each in A and B and 40 percent in C

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