kevin is expecting either a recession or steady growth next year. Recession has a 15% probability of happening. In steady growth, stock ABC returns 13.25% and stock XYZ returns 10.25%. In a recession, stock ABC returns -6.70% and stock XYZ returns -4.50%. You are going to put together a portfolio of these two stocks with positive portfolio weight in each and allocate 65% of the portfolio to ABC with the remainder to XYZ. What is the variance of the portfolio?