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1. Consider the following information on three stocks infour possible future states of theeconomy: (6 marks total)Rate of return if state occursState of economyProbability of state of economyStock AStock BStock CBoom0.40.350.450.38Good0.30.150.200.12Poor0.20.05-0.10-0.05Bust0.10.00-0.30-0.10a. Your portfoliois invested 50% in A, 20% in B, and 30% in C. What is the expectedreturn of yourportfolio? b. What is thevariance of this portfolio? c. What is thestandard deviation of thisportfolio? (1 mark)