State of Economy Boom Bust Probability of State of Economy .72 28 a. Expected retum b. Variance of portfolio Rate of Return if State Occurs Stock A Stock B Stock C 40 -.20 % 10 .29 a. What is the expected return on an equally weighted portfolio of these three stocks? Note: 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 27 percent each in A and B and 46 percent in C? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161. .04 .35