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A portfolio is comprised of equal weights of two stocks labeled Stock X and Stock Y. The covariance between Stock X and Stock Y is 0.10. The standard deviation of Stock X is 0.50, and the standard deviation of Stock Y is 0.50. Which of the following comes closest to the variance of the portfolio?

a. 0.18

b. 0.60

c. 0.55

d. 1.00

e. 0.42

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Financial Management, Finance

Category:- Financial Management
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