Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B	Stock C
Boom	0.66	0.11	0.07	0.25
Bust	0.34	0.15	0.05	0.07

Requirement 1:

What is the expected return on an equally weighted portfolio of these three stocks? (Do not round your intermediate calculations.)

(Click to select)12.52%15.02%24.55%27.32%6.79%

Requirement 2:

What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not round your intermediate calculations.)

(Click to select)0.0104270.0079270.0059270.0024270.010127