Questions 5,6

Question 5 1 pts Return Outcome Boom Probability 60% 25% 0.32 0.16 Normal Recession Depression 10% 0.13 5% 0.05 What is the variance of this asset's returns? Question 6 1 pts The risk free rate is 0.011. If there is a risky asset with an expected return of 0.29, what would be the expected return on a portfolio with a weight of 0.8 on the risky asset, and a weight of 1-0.8 on the risk free asset