A portfolio has 50% of its funds invested in Security One and 50% of its funds invested in Security Two.Security One has a standard deviation of 6%.Security Two has a standard deviation of 12%.The securities have a coefficient of correlation of 0.5.Which of the following values is closest to portfolio variance?
A).0027
B).0063
C).0095
D).0104
E)One must have covariance to calculate expected value.

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The Answer of A portfolio has 50% of its funds invested in Security One and 50% of its funds invested in Security Two.Security One has a standard deviation of 6%.Security Two has a standard deviation of 12%.The securities have a coefficient of correlation of 0.5.Which of the following values is closest to portfolio variance?
A).0027
B).0063
C).0095
D).0104
E)One must have covariance to calculate expected value.

A Portfolio Has 50% of Its Funds Invested in Security