Calculate the variance of portfolio returns

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Reference no: EM1345532

Hayacinth Macaw invests 60% of her funds in stockI and the balance in stock J. The standard deviation of returns on I is 10%, and on J it is 20%. Calculate the variance of portfolio returns, assuming:

A. the correlation between the returns is 1.0
B. The correlation is .5
C. The correlatio is 0.


Reference no: EM1345532


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