Consider the following information: State of the Economy Probability of the State of the Economy Rate of Return if State occurs Stock A Stock B Stock C 0.18 0.04 0.31 0.03 0.16 -0.11 Boom 0.60 0.40 Bust (a) What is the expected return on an equally weighted portfolio of these three stocks? (b) What is the variance of a portfolio invested 20 percent each in stock A and B and 60% in C