Toyota Corp.'s stock is $35 per share. Its expected return is 22% and variance is 11%. Honda Corp.'s stock is $22 per share. Its expected return is 17% and variance is 7%. Benz Corp.'s stock is $45 per share. Its expected return is 13% and variance 7%.

What would be the expected return of a portfolio consisting of 50% Toyota and 50% Honda?

2.Toyota has an expected return of 20%, and a variance of 0.013. Honda has an expected return of 18%, and a variance of 0.008. The covariance between Toyota and Honda is 0.06. Using these data, calculate the variance of a portfolio consisting of 50% Toyota and 50% Honda.

3. The return on the Rush Corporation in the state of recession is estimated to be -25% and the return on Rush in the state of boom is estimated to be 34%. The return on the Oberman Corporation in the state of recession is estimated to be 43% and the return on Oberman in the state of boom is estimated to be -19%. 

What is the covariance between Rush and Oberman if there is a 0.60 probability that the economy will be in the state of boom and a 0.40 probability that the economy will be in the state of recession.