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Calculate the variance of portfolio returns

Problem: Hayacinth Macaw invests 60% of her funds in stockI and the balance in stock J. The standard deviation of returns on I is 10%, and on J it is 20%. Calculate the variance of portfolio returns, assuming:

A. the correlation between the returns is 1.0

B. The correlation is .5

C. The correlatio is 0.

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Finance Basics: Calculate the variance of portfolio returns

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Finance Basics: Calculate the variance of portfolio returns

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