What is the standard deviation of a portfolio which is comprised of $4,500 invested in stock S and $3,000 in stock T?
$\begin{array}{llcc}
\text { State of } & \text { Probability of } & \underline{\text { Returns if State Occurs }} \
\underline{ \text { Economy }} & \underline{\text { State of Economy }} & \underline{\text {Stock S\quad Stock T}} \
\text {Boom } & 10\% &12\% \quad \quad 4\%\
\text { Normal} & 65\%&9\%\quad \quad6\%\
\text { Recession }&25\%&2\%\quad \quad9\%\
\end{array}$
A)1.4%
B)1.9%
C)2.6%
D)5.7%
E)7.2%

Question

What is the standard deviation of a portfolio which is comprised of $4,500 invested in stock S and $3,000 in stock T? 
$\begin{array}{llcc}
  \text { State of } & \text { Probability of } & \underline{\text { Returns if State Occurs }}  \
\underline{ \text { Economy }} & \underline{\text { State of Economy }} & \underline{\text {Stock S\quad  Stock T}} \
 \text {Boom  } & 10\%  &12\% \quad \quad 4\%\
 \text {  Normal} & 65\%&9\%\quad \quad6\%\
\text { Recession }&25\%&2\%\quad \quad9\%\
\end{array}$
A)1.4%
B)1.9%
C)2.6%
D)5.7%
E)7.2%

Quizplus · Accepted Answer

The Answer of What is the standard deviation of a portfolio which is comprised of $4,500 invested in stock S and $3,000 in stock T? 
$\begin{array}{llcc}
  \text { State of } & \text { Probability of } & \underline{\text { Returns if State Occurs }}  \
\underline{ \text { Economy }} & \underline{\text { State of Economy }} & \underline{\text {Stock S\quad  Stock T}} \
 \text {Boom  } & 10\%  &12\% \quad \quad 4\%\
 \text {  Normal} & 65\%&9\%\quad \quad6\%\
\text { Recession }&25\%&2\%\quad \quad9\%\
\end{array}$
A)1.4%
B)1.9%
C)2.6%
D)5.7%
E)7.2%

What Is the Standard Deviation of a Portfolio Which Is