Compute the return variance of the $4 billion in abco stock

Reference no: EM131427144

ABCO is considering selling off two of its four subsidiaries and reinvesting the proceeds in the remaining two subsidiaries, keeping the same relative investment proportions in the surviving two. Assuming that the three economic scenarios are equally likely, compute the return variance of the $4 billion in ABCO stock for each of the six possible pairs of subsidiaries remaining.

Reference no: EM131427144

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