What is the variance of the returns on a portfolio that is invested 60 percent in stock S and 40 percent in stock T

state probability.  return S.   T

boom    20%.               17%       7%

normal    80%.            13%         10%

0.000023

Explanation:

Given the above Question, here is the

E(r)Boom = (0.60 * 0.17) + (0.40 * 0.07) = 0.13

E(r)Normal = (0.60 * 0.13) + (0.40 * 0.10) = 0.118

E(r)Portfolio = (0.20 * 0.13) + (0.80 * 0.118) = 0.1204

Therefore: to get the variance in this case, we calculate the following:

VarPortfolio = 0.20 (0.13 - 0.1204)²] + 0.80 (0.118 - 0.1204)² = 0.000023

Hence, the final answer is = 0.000023

answer; (c) run the name by everyone you can;

answer the amount a seller is paid minus the cost of production;