b) Consider the following information: State ofEconomy. Probability of State ofEconomy Boom 0.65 Bust 0.35...

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b) Consider the following information: State ofEconomy. Probability of State ofEconomy Boom 0.65 Bust 0.35 Rate of Return if State Occurs Stock A Stock B Stock 0.07 0.15 0.33 0.13 0.03 0.06 a) What is the expected return on an equally weighted portfolio of these three stocks? b) What is the variance of a portfolio invested 15% each in A and B and 70% in C

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