A Portfolio Has 38 Percent of Its Funds Invested in Security

Multiple Choice

A portfolio has 38 percent of its funds invested in Security C and 62 percent invested in Security D.Security C has an expected return of 8.47 percent and a standard deviation of 7.12 percent.Security D has an expected return of 13.45 percent and a standard deviation of 16.22 percent.The securities have a coefficient of correlation of .89.What are the portfolio rate of return and variance values?

A) 11.09 percent ; .124031
B) 11.56 percent ; .127620
C) 11.56 percent ; .015688
D) 10.87 percent ; .014308
E) 10.87 percent; .127620