Expected return on equally weighted portfolio

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Consider the following information: State of Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Stock C Boom .65 .08 .02 .33 Bust .35 .22 .28 – .13 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.) Expected return % b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations and round your answer to 5 decimal places, e.g., 32.16161.) Variance of a portfolio

Reference no: EM131525666

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