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[25. (3 marks) A portfolio is composed of two funds: A and B. Their annual...

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[25. (3 marks) A portfolio is composed of two funds: A and B. Their annual expected returns for a $1000 investment and standard deviations are listed follows: Fund A ($) 158 Fund B ($) 240 Expected Return Standard Deviation 625 580 The covariance return of Fund A and Fund B is - 2800. If the portfolio of $1000 investment has 45% of Fund A and 55% of Fund B, find the portfolio risk of this $1000 portfolio. (A) $423.65 (B) $456.12 (C) $482.38 (D) $513.29 (E) $540.04

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