What is the variance of portfolio returns?

Managerial Economics: A Problem Solving Approach
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ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter17: Making Decisions With Uncertainty
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Q5 - Summary statistics for returns on two stocks X and Y are listed below.

Mean    Variance
Stock X    2.85%    0.005000
Stock Y    5.91%    0.006000

The covariance of returns on stocks X and Y is 0.002800. Consider a portfolio of 30% stock X and 70% stock Y.

What is the variance of portfolio returns?
Please round your answer to six decimal places. 
Note that the correct answer will be evaluated based on the full-precision result you would obtain using Excel.

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