Your Portfolio Is Invested 25 Percent Each in Stocks a and C

Multiple Choice

Your portfolio is invested 25 percent each in Stocks A and C, and 50 percent in Stock B. What is the standard deviation of your portfolio given the following information? $$\begin{array} { l c c c r } \text { State of } &\text { Probability of }& { \text { Rate of Return } } \\ \text { Economy } & \text { State of Economy } & { \text { if State Occurs } } \\& & \begin{array}{ll} \text { Stock A } & \text { Stock B } & \text { Stock C } \end{array} \\\text { Boom } &.07 &\begin{array}{ccc} .28\quad\quad & .14 \quad\quad& .11\quad\quad \end{array} \\\text { Good } & .55 &\begin{array}{ccc} .19\quad\quad & .12\quad\quad & .05 \quad\quad\end{array} \\\text { Poor } & .36& \begin{array}{ccc} -.21\quad\quad & .07 \quad\quad& .06\quad\quad \end{array}\\\text { Bust } & .02 & \begin{array}{ccc} -.65\quad\quad & 03 \quad\quad& -.02 \quad \end{array}\\\end{array}$$

A) 6.52 percent
B) 9.64 percent
C) 12.72 percent
D) 10.89 percent
E) 7.39 percent