Your Client, Bo Regard, Holds a Complete Portfolio That Consists

Multiple Choice

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets. $\begin{array}{lr}E\left(R_{p}\right) && 12.00 \% \\\text { Standard Deviation of } P && 7.20 \% \\\text { T-Bill rate } & &3.60 \%\\\\\text { Proportion of Complete Portfolio in P } & &80 \% \\\text { Proportion of Complete Portfolio in T-Bills } && 20 \% \\\\\text { Composition of P: } \\\text { Stock A } & 40.00 \% \\\text { Stock B } & 25.00 \% \\\text { Stock C } &\underline { 35.00 \% } \\\text { Total } & 100.00 \% \\\hline\end{array}$ What is the standard deviation of Bo's complete portfolio?

A) 7.20%
B) 5.40%
C) 6.92%
D) 4.98%
E) 5.76%