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State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .54 .12 .20 .38 Bust .46 .14 .04 -.07 A.

State of Economy	Probability of State of Economy	Stock A	Stock B	Stock C
Boom	.54	.12	.20	.38
Bust	.46	.14	.04	-.07

A. What is the expected return on an equally weighted portfolio of these three stocks?

Expected return____%

B.) What is the variance of a portfolio invested 18 percent each in A and B and 64 percent in C?

Variance ____

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