Consider the following information:

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
		Stock A	Stock B	Stock C
Boom	.65	.08	.02	.23
Bust	.35	.12	.18	.03

What is the expected return on an equally weighted portfolio of these three stocks?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?

Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.

a. Expected return	10.30	%
b. Variance of portfolio