A portfolio consists of securities a and b in the


A portfolio consists of Securities A and B in the proportions of 0.7 and 0.3. Security A has a random error standard deviation of 7%; Security B at 11%. The portfolio beta is 1.2, and the market standard deviation is 10%. The total portfolio variance is (a) 158. (b) 204. (c) 265. (d) 179. (e) 137.

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Financial Management: A portfolio consists of securities a and b in the
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