Stock S is expected to return 12 percent in a boom,9 percent in a normal economy,and 2 percent in a recession.Stock T is expected to return 4 percent in a boom,6 percent in a normal economy,and 9 percent in a recession.The probability of a boom is 10 percent while the probability of a recession is 25 percent.What is the standard deviation of a portfolio which is comprised of $4,500 of Stock S and $3,000 of Stock T?
A)1.4 percent
B)1.9 percent
C)2.6 percent
D)5.7 percent
E)7.2 percent

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The Answer of Stock S is expected to return 12 percent in a boom,9 percent in a normal economy,and 2 percent in a recession.Stock T is expected to return 4 percent in a boom,6 percent in a normal economy,and 9 percent in a recession.The probability of a boom is 10 percent while the probability of a recession is 25 percent.What is the standard deviation of a portfolio which is comprised of $4,500 of Stock S and $3,000 of Stock T?
A)1.4 percent
B)1.9 percent
C)2.6 percent
D)5.7 percent
E)7.2 percent

Stock S Is Expected to Return 12 Percent in a Boom,9