Suppose you have $20,000 total. You invest $15,000 in Stock X and the remainder in Stock Y State of the economy Probability Return on Stock Return on Stock Y Recession 0.1 4% -17% Normal 0.6 9% 12% Boom 0.3 17% 27% What will be the standard deviation on your portfolio? a. 6.1196 b. 21.59% c. 14.36% d. 12.17%
