A portfolio has 25 percent of its funds invested in Security C and 75 percent of its funds invested in Security D. Security C has an expected return of 8 percent and a standard deviation of 6 percent. Security D has an expected return of 10 percent and a standard deviation of 10 percent. The securities have a coefficient of correlation of 0.6. What is the variance of this portfolio?

a. .00849

b. .001675

c. .0081

d. .0042

e. .0072

A portfolio is entirely invested into Mega Scale Inc. equity, which is expected to return 16 percent, and Mini Scale Inc. bonds, which are expected to return 8 percent. 60 percent of the funds are invested in Mega Scale and the rest in Mega Scale. What is the expected return on the portfolio?

Select one:

a. 24.2 percent

b. 12.8 percent

c. 9.6 percent

d. 6.4 percent

e. Need additional information

show me how you got it