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You have just received a significant bonus at your job and you have decided to invest the money by purchasing a portfolio of two stocks.

You have just received a significant bonus at your job and you have decided to invest the money by purchasing a portfolio of two stocks. The first stock "Q" has an expected return of 9.50% with a variance of 36. The second stock "T" has an expected return of 5.25% with a variance of 4. The covariance of the returns of Q and T is -2.5. What is the variance of your portfolio, to two decimal places, if you decide to build a portfolio by investing 60% of your funds on stock Q and 40% of your funds on stock T? NOTE: FOR ALL ANSWERS INVOLVING A PERCENTAGE VALUE, SUCH AS 25%, IGNORE THE PERCENTAGE SIGN AND POST YOUR ANSWER AS 25, SINCE CANVAS DOES NOT ACCEPT PERCENTAGE VALUES.

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