What is the expected return on an equally weighted

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Consider the following information: Rate of Return If State Occurs 

Probability of EconomyState of EconomyStock AStock B StockC

Boom .55 .06 .14 .34

Bust .45 .10 .02 -.07

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 6 decimal places, e.g., .161616.)

Reference no: EM132502681

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