TB MC Qu$.8-12$ Florida Company $($FC$)$ and Minnesota Company...

Florida Company $($FC$)$ and Minnesota Company $($MC$)$ are both service companies. Their stock returns for the past three years were as follows: FC: $-8$ percent, $18$ percent, $20$

percent; MC: $11$ percent, $11$ percent, $23$ percent. What is the standard deviation of a portfolio with $50$ percent of the funds invested in FC and $50$ percent in MC$?($Ignore the

correction for the loss of a degree of freedom set out in the text.$)$

Multiple Choice

$11\mathrm{.}3$ percent

$15\mathrm{.}1$ percent

$7\mathrm{.}0$ percent

$8\mathrm{.}3$ percent