A Portfolio Has 45 Percent of Its Funds Invested in Security

Multiple Choice

A portfolio has 45 percent of its funds invested in Security One and 55 percent invested in Security Two.Security One has a standard deviation of 6 percent.Security Two has a standard deviation of 12 percent.The securities have a coefficient of correlation of .62.What is the portfolio variance?

A) .006946
B) .007295
C) .007157
D) .008104
E) .007506