What is expected return on equally weighted portfolio

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Reference no: EM132044263

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 .65 .11 .19 .37

Bust .35 .12 .06 ?.05

a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return %

b. What is the variance of a portfolio invested 16 percent each in A and B and 68 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.)

Reference no: EM132044263

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