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The economy will boom or bust. An economic bust will happen with 40% probability. Stock A will return 30% if boom, and -20% if bust.

The economy will boom or bust. An economic bust will happen with 40% probability. Stock A will return 30% if boom, and -20% if bust. Stock B will return 15% if boom and -5% if bust. What is the variance of a portfolio that invests $30 in Stock A and $90 in Stock B?

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