A Portfolio Consists of Two Securities: a 90-Day T-Bill and the S&P/TSX

Multiple Choice

A portfolio consists of two securities: a 90-day T-bill and the S&P/TSX Composite.The expected return on the T-bill is 4.5%.The expected return on the S&P/TSX Composite is 12% with a standard deviation of 20%.What is the portfolio standard deviation if the expected return for this portfolio is 15%?

A) 8.13%
B) 12.00%
C) 16.80%
D) 28.00%