Florida Company (FC) and Minnesota Company (MC) Are Both Service

Multiple Choice

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: - 5%, 15%, 20%; MC: 8%, 8%, 20%. What is the variance of the portfolio with 50% of the funds invested in FC and 50% in MC (approximately) ?

A) 85.75
B) 111.50
C) 55.75
D) None of the above