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A portfolio has 40% of its funds invested in Security A and 60% of its funds invested in Security B. Security A has a standard

A portfolio has 40% of its funds invested in Security A and 60% of its funds invested in Security B. Security A has a standard deviation of 4. Security B has a standard deviation of 10. The securities have a coefficient of correlation of .5. Which of the following values is closest to portfolio variance?

(A) 48.12

(B) 59.01

(C) 6.94

(D) 1639.21

Please show how p(1,2)12 is calculated.

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