Consider the Following Portfolio of Assets: What Is the Variance

question 30

Multiple Choice

Consider the following portfolio of assets: What is the variance of the portfolio (round to two decimals) ?

• A)(0.3)²(82.0%) + (0.7)²(76.0%) + (0.3)(0.7)(-0.87) * (9.06%)(8.72%) = 30.19
• B)(0.3)²(82.0%) + (0.7)²(76.0%) + [(0.3)(0.7)]² * (-0.87) * (9.06%)(8.72%) = 41.59
• C)(0.3)²(82.0%) + (0.7)²(76.0%) + 2(0.3)(0.7)(-0.87) * (9.06%)(8.72%) = 15.75
• D)(0.3)(82.0%) + (0.7)(76.0%) + 2(0.3)(0.7)(-0.87) * (9.06%)(8.72%) = 48.93

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