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18. What is the standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? 40 percent of the

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18. What is the standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? 40 percent of the portfolio is invested in stock A and 35 percent is invested in stock C. State of Economy Probability of State of Economy Stock A Boom 15% 13% Normal 65% 6% Bust 20% -2% Returns if State Occurs Stock B Stock C 5% 17% 8% 11% 14% - 19%

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