Economic State	Probability of State of economy	Stock A: Rate of return	Stock B: Rate of Return	Stock C: Rate of Return
Boom	.71	.09	.03	.29
Bust	.29	.18	.24	(-) .09

a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What is the variance of a portfolio invested 26 percent each in A and B and 48 percent in C? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)