Question

Consider the following returns:
Year EndStock X Realized ReturnStock Y Realized ReturnStock Z Realized Return
200420.1%-14.6%0.2%
200572.7%4.3%-3.2%
2006-25.7%-58.1%-27.0%
200756.9%71.1%27.9%
20086.7%17.3%-5.1%
200917.9%0.9%-11.3%
The variance on a portfolio that is made up of equal investments in Stock X and Stock Y stock is closest to:
A) 0.12
B) 0.10
C) 0.69
D) 0.29

Answer

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