Stock Q Will Return 18 Percent in a Boom and 9

Multiple Choice

Stock Q will return 18 percent in a boom and 9 percent in a normal economy.Stock R will return 9 percent in a boom and 5 percent in a normal economy.There is a 75 percent probability the economy will be normal.What is the standard deviation of a portfolio that is invested 40 percent in stock Q and 60 percent in stock R?

A) .78%
B) 1.41%
C) 2.60%
D) 6.67%
E) 8.01%