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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

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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 Bust .25 .75 .118 104 .196 .129 .237 .103 What is the variance of a portfolio invested 30 percent each in Stocks A and B and 40 percent in Stock C? O A..001427 B. .000740 O C..001138 D..000863 E. .001289

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