Question: You construct a portfolio containing two stocks, X and Y. You invest 30% of your funds in Stock X and the remainder in Stock Y.

You construct a portfolio containing two stocks, X and Y. You invest 30% of your funds in Stock X and the remainder in Stock Y. Stock X has an expected return of 8.5% and has a standard deviation of 11%. Stock Y has an expected return of 14.8% and has a standard deviation of 21%. The covariance between the two stocks is -0.01848. What is the variance of the returns on the portfolio?

- 0.014936

- 0.014418

- 0.015113

- 0.014618

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