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9. Your portfolio has 50% of its funds invested in WolfPak Co. and 50% invested in TarrHil Inc. WolfPak Co. has a standard deviation of
9. Your portfolio has 50% of its funds invested in WolfPak Co. and 50% invested in TarrHil Inc. WolfPak Co. has a standard deviation of 6%. TarrHil Inc. has a standard deviation of 12%. The securities have a coefficient of correlation of 0.5. Which of the following values is closest to portfolio variance?
A. 0.0027
B. 0.0063
C. 0.0095
D. One must have covariance to calculate portfolio variance.
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