(Answered) Consider the following informationstate of probability of

Finance

Consider the following information:

State of Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Stock C Boom .67 .10 .04 .25 Bust .33 .14 .20 -.05

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 22 percent each in A and B and 56 percent in C? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.)

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