Consider the following capital market: a risk-free asset yielding 2.25% per year and a mutual fund consisting of 80% stocks and 20% bonds. The expected return on stocks is 13.25% per year and the expected return on bonds is 3.95% per year. The standard deviation of stock returns is 40.00% and the standard deviation of bond returns 14.00%. The stock, bond and risk-free returns are all uncorrelated. The expected return on the mutual fund. =(13.25*.8)+(3.95*.2)

Using the data from problem 1, what is the standard deviation of returns for the mutual fund?