Question: a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 25

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

What is the variance of a portfolio invested 25 percent each in A and B and 50 percent in C?

a. What is the expected return on an equally weighted portfolio

Consider the following information: Rate of Return If State Occurs Probability of State of Economy State of Economy Stock A Stock B Stock C 56 07 15 35 Boom 04 Bust 44 12 05

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