There are only two possible states of the economy. State 1 has a 61% chance of occurring. In State 1, Asset A returns 7.25% and Asset B returns 10.25%. In State 2, Asset A returns -3.90% and Asset B returns -6.90%. A portfolio of just these two assets is invested 49% in Asset A (with Asset B comprising the remainder without any negative weights). What is the standard deviation of the portfolio's returns?

Question 18 options:

	6.41%
	6.58%
	6.76%
	6.93%
	7.10%