Use the Following Information to Answer Questions 8-9

question 20

Multiple Choice

Use the following information to answer questions 8-9.
An investor is considering a portfolio consisting of 60% invested in Stock X and 40% invested in Stock Y. The expected returns for the stocks are 10% for Stock X and 8% for Stock Y. Variance of the stock returns are 0.04 for Stock X and 0.02 for Stock Y, and a covariance of -0.01 between the two stocks.
-What is the variance of the proposed portfolio?

• A) 0.0128
• B) 0.0152
• C) 0.0224
• D) 0.0272

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry, where it drives innovation and efficiency in production processes.

Inequality

A measure of how income, wealth, or opportunities are distributed unevenly among members of a society.

Education

The systematic process of facilitating learning, or the acquisition of knowledge, skills, values, and habits through various methods.

Human Capital

The abilities, understanding, and practical experiences that an individual or community has, as seen in their economic or valuable contribution to a corporation or state.