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Business, 22.04.2021 03:00 jljhenkel

Consider the following information: Rate of Return if State Occurs
State of Probability of State
Economy of Economy Stock A Stock B Stock C
Boom .71 .09 .03 .39
Bust .29 .28 .34 –.19

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 26 percent each in A and B and 48 percent in C? (Do not round intermediate calculations and round your answer to 5 decimal places, e. g., 32.16161.)

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State of Probability of S...
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