Var 1) Consider the portfolio below. It is 25% invested in Stock A and C, and 50% invested in Stock B. What is the expected return of the portfolio? Ri Returns 0.1 Div Probability of State of Economy State of Economy Boom Good 0.3 Poor 0.4 Bust 0.2 Stock A 18% 11% 5% -3% Stock B 48% 18% -9% -32% Stock C 33% 15% -5% -9% 50% 45 20% 15 10% 2) What is the variance of the same portfolio? Var 1) Consider the portfolio below. It is 25% invested in Stock A and C, and 50% invested in Stock B. What is the expected return of the portfolio? Ri Returns 0.1 Div Probability of State of Economy State of Economy Boom Good 0.3 Poor 0.4 Bust 0.2 Stock A 18% 11% 5% -3% Stock B 48% 18% -9% -32% Stock C 33% 15% -5% -9% 50% 45 20% 15 10% 2) What is the variance of the same portfolio