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Maroon has an expected return of 23%, and a variance of 0.012. Gray has an expected return of 15%, and a variance of 0.008.


 

Maroon has an expected return of 23%, and a variance of 0.012. Gray has an expected return of 15%, and a variance of 0.008. The covariance between Maroon and Gray is 0.05. Using these data, calculate the variance of a portfolio consisting of 20% Maroon and 80% Gray.

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