Consider the following information: State of Economy Boom Good Poor Bust Probability of State of Economy .20 50 .25 05 Rate of Return if State Occurs Stock A Stock B .31 18 What is the variance of this portfolio? -.04 -15 41 12 -.07 - 27 Stock C 32 L11 -.05 - 08 Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio?

Consider the following information: Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? What is the variance of this portfolio