What is the total variance of the following portfolio consisting of 2 assets invested in the ratio of 1:2. Asset A: E(r) = 0.2.

Question

What is the total variance of the following portfolio consisting of 2 assets invested in the ratio of 1:2.
Asset A: E(r) = 0.2. σ= 0.5
Asset B: E(r) = 0.4, σ=0.7
Correlation: -0.8
rf = 0.1
A) 0.14
B) 0.12
C) 0.10
D) 0.08

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