Question

What is the variance of the returns on a portfolio comprised of $4,200 of Stock G and $5,300 of Stock H?


State of Economy Probability of State of Economy Rate of Return if State Occurs
Stock G Stock H
Boom .18 .18 .08
Normal .82 .14 .11

A) .000209

B) .000248

C) .000000

D) .001324

E) .000168

Answer

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