You are building a portfolio. There are three states of the world: low (30.00% probability), average (50.00% probability), and high (20.00% probaility). The expected returns for stock A are 20.00%, 55.00%, and 75.00% for each state of the world respectively. For stock B the expected returns are 35.00%, 55.00%, 75.00% for the same states respectively. What is the standard deviation of the portfolio if the portfolio is a 50/50 compositon of A and B and the correlation is .30

Question 4 options:

	2.23%
	7.23%
	0.19%
	13.88%