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

---

Definitions:

Shoshone Indian

A member of a Native American people originally from the western United States, including parts of California, Nevada, Utah, and Idaho.

Pacific Ocean

The largest and deepest of the Earth's oceanic divisions, extending from the Arctic in the north to the Southern Ocean in the south.

Sacajawea

A Lemhi Shoshone woman who is best known for her role as a guide and interpreter for the Lewis and Clark expedition in the early 1800s.

Lewis and Clark

refers to Meriwether Lewis and William Clark, who led the early 19th-century expedition across the western United States, commissioned by President Thomas Jefferson.