Question 6 10 Points Probabilit Probabilit Market Condition Asset 1 Asset 2 Asset 3 Rainfall Asset 4 Good 1/4 16 4 20 Plentiful 1/3 16 Average 1/2 12 6 14 Average 1/3 12 Bad 1/4 8 8 00 8 Light 1/3 8 The returns of Assets 1, 2, and 3 depend on the market condition only. The return of Asset 4 depends on rainfall only. Assume that there is no relation between the marke condition and rai What's the variance of a portfolio with 50% Asset 1 and 50% Asset 3? A 0.00125 B 0.000717 0.0005 D 0.000467 Question 5 10 Points Probabilit Probabilit Market Condition Asset 1 Asset 2 Asset 3 Rainfall Asset 4 Good 1/4 16 4 20 Plentiful 1/3 16 Average 1/2 12 6 14 Average 1/3 12 Bad 1/4 8 8 8 Light 1/3 8 The returns of Assets 1, 2, and 3 depend on the market condition only. The return of Asset 4 depends on rainfall only. Assume that there is no relation between the market condition and rainfall. What's the expected return of a portfolio with 50% Asset 1 and 50% Asset 2? 12% B 10% 9% D 11%