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Consider three scenarios with the probabilities given below. Let the returns on two different stocks in these scenarios be as follows: Scenario Probability return K1

Consider three scenarios with the probabilities given below. Let the returns on two different stocks in these scenarios be as follows: Scenario Probability return K1 return K2 1 0.2 10% 30% 2 0.5 0% 20% 3 0.3 10% 50% If a portfolio has 60% of funds invested in stock 1 and 40% of funds invested in stock 2, find the risk V for this portfolio.

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