Stock A ‘s returns have a standard deviation of 0.5, and stock B’s returns have standard deviation of 0.6.The correlation coefficient between A and B equals 0.5. What is the variance of a portfolio composed of 70 percent Stock A and 30 percent Stock B?

The variance of the profile is 0.2179.

Step-by-step explanation:

We are given the following in the question:

Variance of portfolio is given by:

Putting values, we get,

Thus, the variance of the profile is 0.2179.

dc=6 square root of 3 and ac is 12 square root 3

c and d

step-by-step explanation:

square root of 3/2 = 18/c

cross multiply to get 18*2=√3*c

36/√3 * √3/√3 = c

c= 36*√3/3

c=12√3