A Portfolio Has 50% of Its Funds Invested in Security

question 13

Multiple Choice

A portfolio has 50% of its funds invested in Security One and 50% of its funds invested in Security Two.Security One has a standard deviation of 6%.Security Two has a standard deviation of 12%.
The securities have a coefficient of correlation of 0.5.Which of the following values is the portfolio
Variance?

• A).0027
• B).0063
• C).0095
• D).0104
• E)One must have covariance to calculate expected value.