What is the total variance of the following portfolio including 2 assets invested in the ratio of 3:1. Asset A: E(r) = 0.3 , s = 0.6 Asset B: E(r) = 0.4, s = 0.8 Correlation: 0.8 rf = 0.1 A) 1.14 B) 0.88 C) 0.38 D) 1.44

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Q: B 15.5% 20.2%

A: The coefficient of variation can be computed as follows :

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