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What is the standard deviation of the returns on a portfolio that is invested 37 percent...

What is the standard deviation of the returns on a portfolio that is invested 37 percent in Stock Q and 63 percent in Stock R?

State of
Economy		 Probability of
State of Economy		 Rate of Return
if State Occurs
Stock Q Stock R
Boom .15 .16 .15
Normal .85 .09 .13

Multiple Choice

  • 1.37 percent

  • 2.47 percent

  • 1.63 percent

  • 1.28 percent

  • 2.09 percent

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