What is the expected return on an equally weighted portfolio of these three stocks What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C State of Economy Probability of state of economy Stock A Stock B Stock C Boom 75 07 01 27 Bust 25 12 19 05

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What is the expected return on an equally weighted portfolio of these three stocks? What is the variance of a portfolio invested 20 percent each

- What is the expected return on an equally weighted portfolio of these three stocks?
- What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?

State of Economy Probability of state of economy Stock A Stock B Stock C

Boom .75 .07 .01 .27

Bust .25 .12 .19 -.05

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