Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B	Stock C
Boom	0.78	0.19	0.17	0.21
Bust	0.22	0.13	0.13	-0.03

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)16.51%19.01%28.54%31.31%10.78%

Requirement 2:

What is the variance of a portfolio invested 30 percent each in A and B and 40 percent in C? (Do not round your intermediate calculations.)

(Click to select)0.0082240.0062240.0107240.0027240.010424