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

Question

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

Quizplus · Accepted Answer

The Answer of 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

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