Consider the following information:

State of Economy		Probability of State of Economy	Rate of Return If State Occurs
			Stock A	Stock B	Stock C
Boom		.65	.09	.18	.27
Bust		.35	.15	.08	.21
	What is the standard deviation of returns of a portfolio invested 15 percent each in A and B and the remainder in C?

		0.175
		0.418
		0.085
		0.030
		0.101