Prices Of Apples and Oranges Have Correlation $1$. What can you say about this process?
In the case of owning two apples and an orange, we have $$\operatorname{var}(2A+O)$$ $$=4\operatorname{var}(A)+\operatorname{var}(O)+4\operatorname{cov}(A, O)$$ $$=4\cdot 0.10^2+0.20^2+4\cdot 0.60\cdot 0.10\cdot 0.20$$ $$=0.04+0.04+0.048$$ $$=0.128$$ In the case of owning four apples, we have $$\operatorname{var}(4A)$$ $$=16\operatorname{var}(A)$$ $$=16\cdot 0.10^2$$ $$=0.16$$ Therefore, owning two apples and an orange is less risky than owning four apples.