Given the following information, what is the standard deviation of the returns on a portfolio that is invested 35 percent in both Stocks A and C, and 30 percent in Stock B?

State of Economy	Probability of State Occurring	Rate of Return if State Occurs:
		Stock A (%)	Stock B (%)	Stock C (%)
Growth	.08	21.6	12.8	16.1
Stagnant	.92	7.4	7.2	10.1

Multiple Choice

3.67%

2.91%

2.37%

1.13%

1.95%