What Is the Standard Deviation of the Returns on a Portfolio

Multiple Choice

What is the standard deviation of the returns on a portfolio that is invested 37 percent in Stock Q and 63 percent in Stock R? $$\begin{array} { l c c } { \text { State of } } & \text { Probability of } & \text { Rate of Return } \\\text { Econony } & \text { State of Economy } & \text { if State Occurs } \\ & &\begin{array}{ll}\text { Stock Q } & \text { Stock R }\end{array}\\\text { Boom } & .15& \begin{array}{ll}.16& \quad \quad .15\end{array} \\\text { Normal } & .85 & \begin{array}{ll}.09 & \quad \quad.13\end{array} \\\end{array}$$

A) 1.37 percent
B) 2.47 percent
C) 1.63 percent
D) 1.28 percent
E) 2.09 percent