Hyacinth macaw invests 60 of her funds in stock i and the, Ask an Expert

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Hyacinth Macaw invests 60% of her funds in stock I and the balance in stock J. The standard deviation of returns on I is 10%, and on J it is 20%. Calculate the variance of portfolio returns, assuming

a. The correlation between the returns is 1.0.
b. The correlation is .5.
c. The correlation is 0.

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