Rate of Return if State Occurs Stock C State of Economy Boom Bust Probability of State of Economy 0.70 0.30 Stock A 0.07 0.17 Stock B 0.23 0.15 0.13 -0.03 a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 30 percent each in A and B and 40 percent in C