You have a portfolio that is comprised of 72% of Stock A and 28% of Stock B. What is the variance of this portfolio?
$$\begin{array} { l c c c }
\text { State of the Economy } & \text { Probability } & \text { A } &\text { B } \
\text { Boom } & .60 & 12\%& 22\% \
\text { Normal } & .40 & - 12 \%& - 44\%
\end{array}$$
A)190.9%
B)203.8%
C)268.1%
D)290.9%
E)306.9%

Question

You have a portfolio that is comprised of 72% of Stock A and 28% of Stock B. What is the variance of this portfolio?
$$\begin{array} { l c c c } 
\text { State of the Economy } & \text { Probability } & \text { A } &\text { B }  \
\text { Boom } & .60 & 12\%& 22\% \
\text { Normal } & .40 & - 12 \%& - 44\%
\end{array}$$
A)190.9%
B)203.8%
C)268.1%
D)290.9%
E)306.9%

Quizplus · Accepted Answer

The Answer of You have a portfolio that is comprised of 72% of Stock A and 28% of Stock B. What is the variance of this portfolio?
$$\begin{array} { l c c c } 
\text { State of the Economy } & \text { Probability } & \text { A } &\text { B }  \
\text { Boom } & .60 & 12\%& 22\% \
\text { Normal } & .40 & - 12 \%& - 44\%
\end{array}$$
A)190.9%
B)203.8%
C)268.1%
D)290.9%
E)306.9%

You Have a Portfolio That Is Comprised of 72% of Stock