b

Ent 5 Winter 2022 i Saved Help Submit Save & Exit Check my work Problem 13-9 Returns and Variances (LO1, 2) Consider the following information: Rate of Return if State Occurs Stock B Stock C State of Economy Boom Bust Probability of State of Economy 0.56 0.44 Stock A 0.13 0.15 0.21 0.04 0.39 -0.07 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.) ces Expected return % b. What is the variance of a portfolio invested 20% each in A and B and 60% in C? (Do not round intermediate calculations. Round the final answer to 6 decimal places.) Variance