You hold a portfolio containing three stocks, with information as below.

	Stock A	Stock B	Stock C
Std Dev	30%	50%	10%
Weights	20%	20%	60%

CORRELATION Matrix:

	Stock A	Stock B	Stock C
Stock A	1	0.5	0.3
Stock B	0.5	1	0.4
Stock C	0.3	0.4	1

The variance of this portfolio is closest to: (Hint: use Excel MMULT function to calculate the portfolio variance):

Select one:

a.

.23

b.

insufficient information

c.

.03

d.

.08

e.

.65