The Following Returns Have Been Estimated for Security T and Security

question 58

Multiple Choice

The following returns have been estimated for Security T and Security S: Each scenario is equally likely to occur, and you plan to invest 70% in Security T and 30% in Security S.
-Refer to the information above. What is the standard deviation of the rate of return of the portfolio? Round your answer to the nearest tenth of a percent.

• A)0.0%
• B)19.9%
• C)4.5%
• D)59.7%

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