You are expecting either a recession or steady growth next year. Recession has a 39% probability of happening. In steady growth, stock ABC returns 10.25% and stock XYZ returns 7.25%. In a recession, stock ABC returns -5.50% and stock XYZ returns -3.30%. You are going to put together a portfolio of these two stocks with positive portfolio weight in each and allocate 41% of the portfolio to ABC with the remainder to XYZ. What is the variance of the portfolio? 0.00354 0.00363 0.00373 0.00383 0.00392