State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom .69 .12 .06 .27 Bust .31 .16 .22 .07

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.

What is the variance of a portfolio invested 24 percent each in A and B and 52 percent in C? Note: Do not round intermediate calculations and round your answer to 5 decimal places, e.g., .16161.