Question: Use the following information to answer the two questions below. State of Prob. of the occurs the economy Boom Bust state of economy 0.70 0.30

Use the following information to answer the two questions below. State of Prob. of the occurs the economy Boom Bust state of economy 0.70 0.30 investments in each asset? Rate of return if state Stock A A 0.20 -0.10 Stock B 0.02 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. Enter answer using 4 decimals. Do not use or enter %. For example, if your answer is 3.480% enter 0.0350; if your answer is 0.12013 then enter 0.1201 What is the expected return of a portfolio with equal investments in each asset? 0.02 A What is the variance of the portfolio with equal
 Use the following information to answer the two questions below. State

Use the following informat to answer the two questions below. You MUST use 4 digits in every calculation you do in rder for your answer to be the same as the one in the system. Enter answer using 4 decimals. Do not use or enter \%. For example, if your answer is 3.480% enter 0.0350 ; if your answer is 0.12013 then enter 0.1201 What is the expected return of a portfolio with equal investments in each asset? A What is the variance of the portfolio with equal investments in each asset

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