You are expecting either a recession or steady growth next year. Recession has a 13% probability of happening. In steady growth, stock ABC returns 13.50% and stock XYZ returns 10.50%. In a recession, stock ABC returns -6.80% and stock XYZ returns -4.60%. You are going to put together a portfolio of these two stocks with positive portfolio weight in each and allocate 67% of the portfolio to ABC with the remainder to XYZ. What is the variance of the portfolio? 0.00391 0.00400 0.00410 0.00420 0.00430