You had all of your money invested in Dunkin' Brands Group. After taking FINA 363, you realize you should diversify. You want move half (50%) of your money into Whole Foods, and leave the other half in Dunkin' Brands Group. Use the information below to answer the following two questions about a 50/50 blended portfolio. Expected Return Standard Deviation Dunkin' Brands Group 10% 18% Whole Foods 8% 15% Correlation between Dunkin' Brands Group and Whole Foods 0.55

What is the standard deviation of the 50/50 blended portfolio? a. 10.5% b. 11.5% c. 12.5% d. 13.5% e. 14.5%