Question 4. [16 marks] A discrete-time financial market has two risky assets. The returns of assets are denoted by K and K2, respectively. Suppose that the returns of assets follow the scenarios: K2 wi Scenario Probability K 0.4 -10% 20% 002 0.2 0% 20% 0.4 20% 10% 03 (a) Calculate the variance of the return of asset 1. (b) Calculate the variance of the return of asset 2. (c) Find the covariance of the returns. (d) If a portfolio has weights wi = 80% and w2 = 20%, find its variance