Question

Your portfolio is invested 20 percent each in A and C, and 60 percent in B....

Your portfolio is invested 20 percent each in A and C, and 60 percent in B. What is the standard deviation of the portfolio?

Rate of Return if State Occurs
State of Economy Probability of State of Economy Stock A Stock B Stock C
Boom .15 .37 .47 .27
Good .45 .22 .18 .11
Poor .35 -.18 -.22 -.08
Bust .05 -.04 -.07 -.05

Multiple Choice

  • 10.96%

  • 21.36%

  • 25.63%

  • 17.26%

  • 29.78%

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