Question 8 You have a portfolio which is comprised of 45 percent of stock A and 55 percent of stock B. What is the portfolio standard deviation? State of the Economy Probability E(R) A E(R) 45% 55% Boom 0.22 32.0 50.0 Normal 0.60 9.00 30.0 Recession 0.18 (30.0) (12.0) 17.89 percent 17.56 percent 20.00 percent 18.06 percent 19.77 percent