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State of Prob. of the Rate of return if state occurs the economy state of economy Stock A Stock B Boom 0.40 0.15 0.05 Bust

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State of Prob. of the Rate of return if state occurs the economy state of economy Stock A Stock B Boom 0.40 0.15 0.05 Bust 0.60 -0.05 0.05 You MUST use 4 digits in every calculation you do in order for your answer to be the same as the one in the system. Enter answer using 4 decimals. Do not use or enter the %. For example, if your answer is 3.48% enter 0.035; if your answer is 0.12013 then enter 0.1201 What is the expected return of a portfolio with 75% in asset A and 25% in Asset B? C] e; What is the variance of the portfolio with ?5% in asset Aand 25% in Asset B? C] 155; Question 3 {2 points} Historically, the ______ _ risk an investor is willing to accept, the ________ the potential return for the investment. 0 1} more; lesser O 2} less; greater 0 3} more: greater 0 4} Historically, the riskfreturn trade-off has not played out in any particular manner

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