Question
Setia, an individual investor, decided to invest in HH Company and II Company. Here are the pieces of information about the two investments: Company Number
Setia, an individual investor, decided to invest in HH Company and II Company. Here are the pieces of information about the two investments:
| Company | Number of Shares in Portfolio | Standard Deviation | Expected Return |
|---|---|---|---|
| HH | 8 | 6% | 4% |
| II | 2 | 5% | 10% |
Given that both investments have a covariance of .8, what is the variance of Setia's portfolio?
Group of answer choices
0.2584
0.4019
0.0261
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Applied Conic Finance
Authors: Dilip Madan, Wim Schoutens
1st Edition
1107151694, 978-1107151697
