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Consider the following Information: Rate of Return if state State of Economy Probability of State of Economy Occurs Boom Bust Stock A 11 15

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Consider the following Information: Rate of Return if state State of Economy Probability of State of Economy Occurs Boom Bust Stock A 11 15 Stock B Stock C .05 .26 21 -.06 .68 .32 a. What is the expected return on an equally weighted portfolio of these three stocks? Note: Do not round Intermedlate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the variance of a portfolio Invested 23 percent each In A and B and 54 percent in C? Note: Do not round Intermediate calculations and round your answer to 5 decimal places, e.g., .1616 a. Expected return 9.08 % b. Variance of portfolio +

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