Use the following information to answer the two questions below.

State of Prob. of the Rate of return if state occurs

the economy state of economy Stock A Stock B

Boom $0\mathrm{.}400\mathrm{.}150\mathrm{.}02$

Bust $0\mathrm{.}600\mathrm{.}050\mathrm{.}02$

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. When entering your answer, round to the nearest $0\mathrm{.}01\%$ but do not enter the $\%$ sign. For example, if your answer is $3\mathrm{.}484\%$ enter $3\mathrm{.}48$; if your answer is $0\mathrm{.}12013$ then enter$12\mathrm{.}01$

What is the expected return of a portfolio with $80\%$ in asset A and $20\%$ in Asset B$?$

What is the variance of the portfolio with $80\%$ in asset A and $20\%$ in Asset B$?$