3. Given the following information for returns K, and Kz: Scenario Probability Recession 0.3 Stagnation 0.5 Boom 0.2 Return K1 - 10% 0% 20% Return K2 -5% 5% 10% For a portfolio ((w,,K), (W2, K2 )} with w= 60% and W2 = 40%, (a) Find the expectation of return of this portfolio. (b) Find the variance of return of this portfolio