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Use the following information to answer the two questions below State of the economy Boom Bust Prob. of the Rate of return if state occurs

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Use the following information to answer the two questions below State of the economy Boom Bust Prob. of the Rate of return if state occurs Stock A 0.20 0.10 state of economy Stock B 0.70 0.02 0.30 0.02 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. what is the expected return of a portfolio with 75% in asset A and 25% in Asset B? ab what is the variance of the portfolio with 75% in asset A and 25% in Asset B? ab Save

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