What Is the Portfolio Variance If 30% Is Invested in Share

question 44

Multiple Choice

What is the portfolio variance if 30% is invested in share S and 70% is invested in share T?
$\begin{array} { | l | l | l | l | } \hline & & \multicolumn{3}{|c|} { \text { Returns if State Occurs } } \\\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share S } & \text { Share T } \\\hline \text { Boom } & 40 \% & 12 \% & 20 \% \\\hline \text { Normal } & 60 \% & 6 \% & 4 \% \\\hline\end{array}$

• A).002220
• B).004056
• C).006224
• D).008080
• E).098000

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Definitions:

Wealth Gap

The unequal distribution of assets among residents of a country, highlighting the difference in wealth between the richest and the poorest.

Discharged

The act of formally terminating an employee's position within a company, often as a result of disciplinary action or organizational downsizing.

Morally Wrong

Actions or behaviors that are considered unethical or contrary to societal or personal moral standards.

Efficiency

The extent to which resources such as energy, time, and money are well-used for the intended task or purpose, minimizing waste and maximizing outputs.