What Is the Standard Deviation of a Portfolio That Is $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad$

question 55

Multiple Choice

What is the standard deviation of a portfolio that is invested 40% in share Q and 60% in share R?
$\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad$ Returns if
$\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad$ State Occurs
$\begin{array}{|l|l|l|l|}\hline \text { State of Economy } & \text { Probability of State of Economy } & \text { ShareQ } & \text { Share R } \\\hline \text { Boom } & 25 \% & 18 \% & 9 \% \\\hline \text { Normal } & 75 \% & 9 \% & 5 \% \\\hline\end{array}$

• A)0.7%
• B)1.4%
• C)2.6%
• D)6.8%
• E)8.1%

---

Definitions:

Tendons

Strong, flexible fibrous connective tissue that connects muscles to bones, transmitting the force created by the muscle into movement of the bone.

Dense Regular Collagenous

A type of connective tissue with collagen fibers aligned in parallel, providing tensile strength in one direction.

Dense Regular Collagenous

Tissue composed of parallel alignments of collagen fibers that provide high tensile strength in one direction, found in tendons and ligaments.

Ligament

A short band of tough, flexible, fibrous connective tissue that connects two bones or cartilages or holds together a joint.