medium · GMAT Quant
A portfolio manager records daily percentage returns for two asset classes with equal mean daily returns over a trading quarter. Asset Class A consists of 25 trading days with a return variance of 4.0 square percentage points. Asset Class B consists of 75 trading days with a return variance of 8.0 square percentage points.
What is the variance of daily returns for the combined set of 100 trading days?
- 6.0
- 6.5
- 7.0
- 7.1
- 700.0
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