Use the following to answer questions:

State	Probability	Return on A	Return on B
Boom	0.65	0.30	0.05
Bust	0.35	0.10	0.20

a) What is the expected return on a portfolio that is 70% invested in A and 30% invested in B?

b) What is the expected return on a portfolio that is equally weighted amongst A, B, and the risk-free asset? The risk-free rate is 5%