Consider the following information: Rate of Return If State Occurs Probability of State of Economy State of Economy Stock A Stock B Stock C Вoom .75 .07 .18 .27 Bust .25 .12 -.08 -.21 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) a. Expected return 11.58 % b. Variance

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