What Is the Variance of a Portfolio Consisting Of $€ 3,500$

question 96

Multiple Choice

What is the variance of a portfolio consisting of $€ 3,500$ in share G and $\in 6,500$ in share H?
$\begin{array} { | l | l | l | l | } \hline & & \multicolumn{2}{|l|} { \text { Returns if State Occurs } } \\\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share G } & \text { Share H } \\\hline \text { Boom } & 15 \% & 15 \% & 9 \% \\\hline \text { Normal } & 85 \% & 8 \% & 6 \% \\\hline\end{array}$

• A).000209
• B).000247
• C).002098
• D).037026
• E).073600

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Definitions:

Domestic Service

Employment within a household, typically performing tasks related to cleaning, cooking, and home maintenance.

Fair Labor Standards Act

A United States law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work more than forty hours a week. It also prohibits most employment of minors in "oppressive child labor."

Overtime Payments

Compensation required by law for employees who work longer than the standard workweek, often at a higher pay rate.

Minimum Wage

The lowest legally permissible amount of money that workers can be paid by employers for their labor, determined by law or contract.