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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 B 0.04 0.04 state of economy Stock A 0.75 0.15 0.25 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 what is the expected return of a portfolio with 20% in asset A and 80% in Asset B? abs what is the variance of the portfolio with 20% in asset A and 80% in Asset B

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