Florida Company (FC) and Minnesota Company (MC) are both service companies.Their stock returns for the past three years were: FC: -5%,15%,20%; MC: 8%,8%,20%.What is the variance of a portfolio with 50% of the funds invested in FC and 50% in MC?
A) 85.75
B) 111.50
C) 55.75
D) 57.17
Correct Answer:
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