What Is the Portfolio Variance If 30% Is Invested in Stock

Multiple Choice

What is the portfolio variance if 30% is invested in stock S and 70% is invested in stock T? $$\begin{array} { l c c c c } \text { State of } & \text { Probability of } & { \text { Returns if State Occurs } } \\\text { Economy } & \text { State of Economy } & \text { Stock S } & \text { Stock T } \\\text { Boom } & 40 \% & 12 \% & 20 \% \\\text { Normal } & 60 \% & 6 \% & 4 \%\end{array}$$

A) .002220
B) .004056
C) .006224
D) .008080
E) .098000