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You are considering investing equally in two assets. Asset A is an investment in gold while Asset B is an equity fund aiming at moderate

You are considering investing equally in two assets. Asset A is an investment in gold while Asset B is an equity fund aiming at moderate growth. Below is the data pertaining to each investment.

State of the Economy

Probability of Occurrence

Return on Asset A

Return on Asset B

Recession

10%

8%

2%

Stable

30%

3%

4%

Good

40%

2%

10%

Boom

20%

4%

20%

Based upon the data given, calculate the variance for each asset.

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