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

question 77

Multiple Choice

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

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

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Definitions:

Amygdala

The amygdala is a region of the brain involved in emotion regulation, particularly fear and the processing of emotional memories.

Cerebellum

A region of the brain that plays a significant role in motor control, and it may also be involved in some cognitive functions.

Thalamus

A structure in the brain that acts as a relay station for sensory information, directing it to the appropriate areas of the brain for processing.

Hippocampus

A region in the brain crucial for learning and memory formation.