The following array ("box") contains the variances and covariances of three funds: a stock fund (S), a bond fund (B), and a real estate fund (RE). Each entry corresponds to the covariance of the return on the asset in the row with the return on the asset in the column. When the row asset and column asset are the same, the entry is the variance of that asset. For example, the variance of the stock fund is 0.0256 and the covariance of the stock fund return with the real estate fund return is 0.0024. If it helps for further clarification, note that this array is the same conceptually as the one labeled "Covariances" in the "S&P500 and bond returns with MVE" spreadsheet.

	S	B	RE
S	0.0256	0.0000	0.0024
B	0.0000	0.0064	0.0004
RE	0.0024	0.0004	0.0025

Use the box method to find which of the following is closest to the volatility (aka standard deviation) of a portfolio with 40% weight in S, 30% weight in B, and 30% weight in RE.

Group of answer choices

8.0%

2.5%

7.5%

5.5%

10.3%