Question: Consider the following information: a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of

Consider the following information:

a. What is the expected return on an equally weighted portfolio of these three stocks?

b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?

Consider the following information: a. What is the expected return on


State of Economy Probability of State of Economy Rate of Return If State Occurs Stock A Stock B Stock C Boom Bust 60 ,40 .15 03 .02 16 -34 -.08

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