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The statistics for the returns on the various components of a retirement portfolio are: Asset Allocation (w) Expected Return (E(r)) Standard Deviation () Correlation() Cash

The statistics for the returns on the various components of a retirement portfolio are:

Asset

Allocation (w)

Expected Return (E(r))

Standard Deviation ()

Correlation()

Cash

Bonds

Stock

Cash

10%

3.81%

2%

1.00

0.75

-0.36

Bonds

10%

4.61%

4%

1.00

0.22

Stocks

80%

7.27%

22%

1.00

Calculate the portfolio variance.

Enter the answer as a decimal (with 4 decimal places). For example 0.0234412 = 0.0234.

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