S13-09 Returns and Variances [LO1] Consider the following information: Rate of Return If State Occurs Probability of State State of Economy of Economy Boom Bust .75 .25 Stock A .07 Stock B 18 Stock C .27 .12 -.08 -.21 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 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) a. Expected return b. Variance %