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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 . 7 0

State of Prob. of the Rate of return if state occurs
the economy state of economy Stock A Stock B
Boom 0.700.200.02
Bust 0.30-0.100.02
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 %. For example, if your answer is 3.480% enter 0.0350; if your answer is 0.12013 then enter 0.1201
What is the expected return of a portfolio with equal investments in each asset?
What is the variance of the portfolio with equal investments in each asset?

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