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Assume that the risk-free rate is 1%. State of Economy Probability Stock A Stock B Boom 2 30 .16 Neutral 4 0 .02 Recession -1

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Assume that the risk-free rate is 1%. State of Economy Probability Stock A Stock B Boom 2 30 .16 Neutral 4 0 .02 Recession -1 -0.04 What is the variance of a portfolio that is equally invested in Stock A, Stock B, and the risk-free asset? (Round to 6 places after decimal) Assume that the risk-free rate is 1%. State of Economy Probability Stock A Stock B Boom 2. 3 16 Neutral .02 Recession 4 -0.04 What is the variance of a portfolio that has $2000 in Stock A, $3000 in Stock B, and $5000 in the risk-free asset? (Round to 6 places after decimal)

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