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What Is the Standard Deviation of a Portfolio That Is \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad

Question 85

Multiple Choice

What is the standard deviation of a portfolio that is invested 40% in share Q and 60% in share R?
\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad Returns if
\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad State Occurs
 State of Economy  Probability of State of Economy  ShareQ  Share R  Boom 25%18%9% Normal 75%9%5%\begin{array}{|l|l|l|l|}\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { ShareQ } & \text { Share R } \\\hline \text { Boom } & 25 \% & 18 \% & 9 \% \\\hline \text { Normal } & 75 \% & 9 \% & 5 \% \\\hline\end{array}


A) 0.7%
B) 1.4%
C) 2.6%
D) 6.8%
E) 8.1%

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