Question: please solve it step by step 7. Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy

please solve it step by step please solve it step by step 7. Consider the following information: Rate

7. Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom .60 .07 .15 .33 Bust .40 .13 .03 -.06 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? correlation coefficient between A and B is 0.1, A and C is 0.55, and B and C is -0.35

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