Rick Gordan is considering investing in two securities, A and B, and the relevant information is given below:

Suppose Emma borrowed from her friend 40 shares of security B, which is currently sold at $50, and sold all shares of the security. (She promised her friend she would pay her back in a year with the same number of shares of security B).

Then she bought security A with the proceeds obtained in the sales of security B shares and the cash of $6,000 she owned. Calculate the standard deviation of her portfolio. Report your answer in decimal form, rounded to 4 decimal points.

State of Return on Security Return on Security Probability A (%) B (%) Economy Bear 0.6 3 6.5 Bull 1-0.6 15 6.5 State of Return on Security Return on Security Probability A (%) B (%) Economy Bear 0.6 3 6.5 Bull 1-0.6 15 6.5