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

\begin{tabular}{|l|c|r|r|r|} \hline State of the Economy & Probability of the State of Economy & \multicolumn{3}{|c|}{ Rate of Return of State Occurs } \\ \hline & & Stock A & Stock B & \multicolumn{1}{|c|}{ Stock C } \\ \hline Boom & 0.75 & 0.07 & 0.18 & 0.27 \\ \hline Bust & 0.25 & 0.12 & -0.08 & -0.21 \\ \hline \end{tabular}