What is the variance of a portfolio invested


State of Economy Probability of State of Economy Rate of Return if State Occurs
Stock A StockB StockC
Boom 0.65 0.08 0.02 0.23
Bust 0.35 0.12 0.18 -0.03

a. What is the expected return on an equally weighted portfolio of these three stocks?
B. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?

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Accounting Basics: What is the variance of a portfolio invested
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