What Is the Standard Deviation of a Portfolio Which Is $€ 4,500$

question 103

Multiple Choice

What is the standard deviation of a portfolio which is comprised of $€ 4,500$ invested in share S and $63.000$ in share T?
$\begin{array} { | l | l | l | l | } \hline & & \multicolumn{2}{|c|} { \text { Returns if State Occurs } } \\\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { Share S } & \text { Share T } \\\hline \text { Boom } & 10 \% & 12 \% & 4 \% \\\hline \text { Normal } & 65 \% & 9 \% & 6 \% \\\hline \text { Recession } & 25 \% & 2 \% & 9 \% \\\hline\end{array}$

• A)1.4%
• B)1.9%
• C)2.6%
• D)5.7%
• E)7.2%

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