Question: Question 9 (13 points) Use the following information to answer the two questions below. State of the economy Boom Bust Prob. of the Rate of

 Question 9 (13 points) Use the following information to answer the

Question 9 (13 points) 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 0.15 -0.05 state of economy Stock B 0.25 0.04 0.75 0.04 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? What is the variance of the portfolio with 20% in asset A and 80% in Asset B? abs

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