You Have a Portfolio That Is Comprised of 72% of Stock

question 37

Multiple Choice

You have a portfolio that is comprised of 72% of Stock A and 28% of Stock B. What is the variance of this portfolio?
$$\begin{array} { l c c c } \text { State of the Economy } & \text { Probability } & \text { A } &\text { B } \\\text { Boom } & .60 & 12\%& 22\% \\\text { Normal } & .40 & - 12 \%& - 44\%\end{array}$$

• A)190.9%
• B)203.8%
• C)268.1%
• D)290.9%
• E)306.9%