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Question 12 (3 points) If your portfolio is invested 20 percent in A, 30 percent...

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Question 12 (3 points) If your portfolio is invested 20 percent in A, 30 percent in B, and 50 percent in C, what is the portfolio's expected return and the variance? State of Economy Probability of State of Stock A Return (9) Stock B Return (%) Economy Stock C Return (%) Boom 0.5 5% 35% 47% Normal 0.4 139 25% 23% Recession 0.1 1996 -24% -38% OA) Expected Return = 23.90% and Variance = 0.02781 B) Expected Return - 21.21% and Variance - 0.01491 C) Expected Return - 21.21% and Variance = 0.01668 D) Expected Return - 21.21% and Variance - 0.12212 E) Expected Return = 23.90% and Variance -0.01668

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