What is the standard deviation of the returns on a portfolio that is invested in stocks A, B, and C? 20 percent of the portfolio is invested in stock A and 45 percent is invested in stock C.

State of Economy

Boom Normal Bust

Probability of Returns if State Occurs

State of Economy Stock A Stock B Stock C 20% 9% 3% 11% 55%4%5%8% 25% -2% 10% -13%