Question: Can you please provide the explanation, formula and correct answer for the problem above? U.S. market portfolio: Variance: 0.25 Expected rate of return: 0.12 Foreign

Can you please provide the explanation, formula and correct answer for

Can you please provide the explanation, formula and correct answer for the problem above?

U.S. market portfolio: Variance: 0.25 Expected rate of return: 0.12 Foreign portfolio: Variance estimated based on dollar rate of return: 0.64 Expected dollar rate of return: 0.15 Correlation Coefficient (estimated based on dollar rate of return) between the U.S. market portfolio and the foreign portfolio: .80 You invest $3 million in the US market portfolio and $7 million in the foreign portfolio. What is the variance of your portfolio? Select one: a. 1004 b. 4705 C. 3707 . 2321 U.S. market portfolio: Variance: 0.25 Expected rate of return: 0.12 Foreign portfolio: Variance estimated based on dollar rate of return: 0.64 Expected dollar rate of return: 0.15 Correlation Coefficient (estimated based on dollar rate of return) between the U.S. market portfolio and the foreign portfolio: .80 You invest $3 million in the US market portfolio and $7 million in the foreign portfolio. What is the variance of your portfolio? Select one: a. 1004 b. 4705 C. 3707 . 2321

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