Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom 0.76 0.29 0.33 0.31 Bust 0.24 0.15 0.11 0.09 Requirement 1: What...

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Finance

Rate of Return if State Occurs
State of Economy Probability of
State of Economy Stock A Stock B Stock C
Boom 0.76 0.29 0.33 0.31
Bust 0.24 0.15 0.11 0.09

Requirement 1:
What is the expected return on an equally weighted portfolio ofthese three stocks? (Do not round your intermediatecalculations.)
26.36%
28.86%
38.39%
41.16%
20.63%

Requirement 2:
What is the variance of a portfolio invested 20 percent each inA and B and 60 percent in C? (Do not round yourintermediate calculations.)
0.013091
0.007591
0.015291
0.011091
0.015591

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Rate of Return if State OccursState of EconomyProbability ofState of EconomyStock AStock BStock CBoom0.760.290.330.31Bust0.240.150.110.09 Requirement 1:What is the expected return on an equally weighted portfolio ofthese three stocks? (Do not round your intermediatecalculations.)26.36%28.86%38.39%41.16%20.63% Requirement 2:What is the variance of a portfolio invested 20 percent each inA and B and 60 percent in C? (Do not round yourintermediate calculations.)0.0130910.0075910.0152910.0110910.015591

		Rate of Return if State Occurs
State of Economy	Probability of State of Economy	Stock A	Stock B	Stock C
Boom	0.76	0.29	0.33	0.31
Bust	0.24	0.15	0.11	0.09