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Use the following information to answer the two questions below. State of Prob. of the Rate of return if state occurs the economy state of
Use the following information to answer the two questions below. State of Prob. of the Rate of return if state occurs the economy state of economy Stock A Stock B Boom 0.75 0.15 0.04 Bust 0.25 0.05 0.04 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. What is the expected return of a portfolio with 20% in asset A and 80% in Asset B? What is the variance of the portfolio with 20% in asset A and 80% in Asset B
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