Question: .01 02 9. Returns and Standard Deviations Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs

.01 02 9. Returns and Standard Deviations Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom Bust .60 .40 .18 .03 .04 .16 .31 -.11 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

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