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(Estimated time allowance: 17 minutes) 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 0.60 0.15 0.04 Bust 0.40 0.05 0.04 Excel file here 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 the %. For example, if your answer is 3.48% enter 0.035; if your answer is 0.12013 then enter 0.1201 What is the expected return of a portfolio with 20% in stock A and 80% in stock B? ______ What is the variance of the portfolio with 20% in stock A and 80% in stock B? ________