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Question 18 Given the following information, what is the standard deviation of the returns on a...
Question 18
Given the following information, what is the standard deviation of the returns on a portfolio that is invested 40 percent in stock A, 35 percent in stock B, and the remainder in stock C?
Rate of Return is State Occurs
State of Economy Probability of State of economy Stock A Stock B Stock C
Normal .65 14.3% 16.7% 18.2%
Recession .35 -9.8% 5.4% -26.9%
Group of answer choices
12.72 percent
14.07 percent
1.41 percent
7.41 percent
11.86 percent
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