Imagine that 20% of your portfolio is invested in a bond fund and 80% of your portfolio is invested in a stock index fund. The annual expected return of the bond portfolio is 4% and the annual expected return of the stock index is 8%. The annual standard deviation of the bond portfolio is 5% and the annual standard deviation of the stock index is 30%. The correlation of the bond fund and the stock index is 0.1.

1, What is the expected return of your portfolio?

2, What is the variance of your portfolio?