Consider the following information: State of Rate of Return if State Occurs Probability of State of Economy Economy Stock A Stock B Stock C 0.12 0.15 0.38 -0.05 Вoom 0.54 0.20 Bust 0.46 0.06 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return % b. What is the variance of a portfolio invested 15% each in A and final answer to 6 decimal places.) and 70% in C? (Do not round intermediate calculations. Round the Variance

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.