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

question 110

Multiple Choice

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

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

---

Definitions:

X-ray Diffraction

A technique used to determine the atomic and molecular structure of a crystal, in which the crystalline atoms cause a beam of incident X-rays to diffract into many specific directions.

Nucleotide

The basic building block of nucleic acids, such as DNA and RNA, comprised of a sugar, a phosphate group, and a nitrogenous base.

Phosphate Group

A functional group or radical comprising one phosphorus atom connected to four oxygen atoms, often involved in energy transfer in biological systems.

Five-Carbon Sugar

A type of sugar molecule that contains five carbon atoms, examples include ribose and deoxyribose, important in RNA and DNA structures.