You Have a Portfolio Which Is Comprised of 40% of Stock

Multiple Choice

You have a portfolio which is comprised of 40% of Stock A and 60% of Stock B. What is the portfolio standard deviation?
$\begin{array}{lllr}\text { State of the Economy } & \text { Probability } &\text {E(R) }_{A}&\text { E(R) }_{B}\\&&40\%&60\%\\\\\text { Boom }&.10&20\%&14\%\\\text { Normal } & .75 & 11\% & 9 \% \\\text { Recegsion } & .15& -20 \% & -5 \%\end{array}$

A) 4.00%
B) 5.56%
C) 6.06%
D) 6.82%
E) 7.95%