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Title: The variance on a portfolio that is made up of equal investments in Duke Energy and Microsoft stock ... Post by: Memphic on Nov 19, 2017 The variance on a portfolio that is made up of equal investments in Duke Energy and Microsoft stock is closest to:
A) .065 B) 0.090 C) .149 D) -0.020 Title: Re: The variance on a portfolio that is made up of equal investments in Duke Energy and Microsoft ... Post by: deusmaroto on Nov 19, 2017 A
Explanation: A) Var(Rp) = x12Var(R1) + x22Var(R2) + 2X1X2Cov(R1,R2) = (.50)2(0.0568) + (.50)2(0.2420) + 2(.5)(.5)(-0.0193) = 0.0651 |