Problem 11-9 Returns and Standard Deviations [LO 1, 2] Consider the following information: Rate of Return if State Occurs State of Economy Boom Bust Probability of State of Economy .71 Stock A .09 .18 Stock B .03 .24 Stock C .29 -.09 .29 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 26 percent each in A and B and 48 percent in C? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) a Expected return Variance of portfolio % b. 11.79 0.00183