You Have a Portfolio That Is Comprised of 40% of Stock

question 5

Multiple Choice

You have a portfolio that is comprised of 40% of Stock A and 60% of Stock B. What is the variance of the portfolio?
$\begin{array}{lllr}\text { State of the Economy } & \text { Probability } &\text {E(R) }_{A}&\text { E(R) }_{B}\\&&40\%&60\%\\\\\text { Normal } & .7 & 12\% & 14 \% \\\text { Recegsion } & .3 & -7 \% & -10 \%\end{array}$

• A)101.64%
• B)102.13%
• C)106.84%
• D)107.15%
• E)108.93%

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Definitions:

View-Master

The View-Master is a stereoscope designed for viewing 3D images mounted on a paper disk, historically popular for entertainment and educational purposes.

Photographs

Images created by capturing light on a light-sensitive surface, typically categorized as a form of visual documentation.

Binocular Disparity

The difference in image location of an object seen by the left and right eyes, resulting from the eyes’ horizontal separation.

Motion Parallax

A depth cue involving differences in speed and direction of objects' motion in the visual field due to the observer's movement.