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Suppose the information in the following table is true... State Probability Return X Return Y Return Z Portfolio Return Recession 41 8% 8% -4% -4%

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Suppose the information in the following table is true... State Probability Return X Return Y Return Z Portfolio Return Recession 41 8% 8% -4% -4% 2% 2% ? Normal 11% 5% 14% Expansion 20 1 3% 30% 22% ? If 15% of your wealth is put into stock X and 25% in stock Y. These rest of your wealth you put into stock Z, then what is standard deviation of expected returns for the portfolio (in percent)? O 7.21% 5.24% O 9.51% 8.62% 6.85% 09.01% 10.52% o 7.92%

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