What Is the Variance of a Portfolio Consisting of $3,500

question 60

Multiple Choice

What is the variance of a portfolio consisting of $3,500 in stock G and $6,500 in stock H?
$\begin{array}{llcc} \text { State of } & \text { Probability of } & \underline{\text { Returns if State Occurs }} \\\underline{ \text { Economy }} & \underline{\text { State of Economy }} & \underline{\text {Stock G\quad Stock H}} \\ \text {Boom } & 15\% &15\% \quad \quad 9\%\\ \text { Normal} & 85\%&8\%\quad \quad6\%\\\end{array}$

• A).000209
• B).000247
• C).002098
• D).037026
• E).073600

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