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Consider the following information: Required: (a) What is the expected return on an equally weighted portfolio of these three stocks? Expected return % (b) What

Consider the following information: Required: (a) What is the expected return on an equally weighted portfolio of these three stocks?

Expected return %

(b) What is the variance of a portfolio invested 28 percent each in A and B and 44 percent in C?

Variance of a portfolio

Rate of Return if State Occurs Probability of State 73 .27 State of Stock C Stock A ) 20 Economyof Economy Stock B 05 26 Boom 31 Bust

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