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What is the variance of the portfolio

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Assume that you invest 50% of your money in FIRM ONE and 50% of your money in FIRM TWO. Assume that the variance of returns for FIRM ONE is 1. Assume that the variance of returns for FIRM TWO is 1. Assume that the return for FIRM ONE is 15% and the return for FIRM TWO is 15%.

If the correlation coefficient between FIRM ONE and FIRM TWO is .5, what is the variance of the portfolio?

Reference no: EM132816166

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