There is a 15 percent probability the economy will boom; otherwise, it will be normal. stock g should return 15 percent in a boom and 8 percent in a normal economy. stock h should return 9 percent in a boom and 6 percent otherwise. what is the variance of a portfolio consisting of $3,500 in stock g and $6,500 in stock h?
a) .000209
b) .000247
c) .002098
d) .037026
e) .073600
Answers: 3
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