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The following returns have been estimated for Security T and Security S: Scenario Security T Security...

The following returns have been estimated for Security T and Security S:

Scenario Security T Security S
1 20% 10%
2 13% -6%
3 15% 20%

Each scenario is equally likely to occur, and you plan to invest 70% in Security T and 30% in Security S. What is the standard deviation of the rate of return of the portfolio? Round your answer to the nearest tenth of a percent.

A) 0.0%

B) 4.5%

C) 19.9%

D) 59.7%

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SIMPLE STATISTICAL FORMULA APPLIED. NO EXCEL FUNCTIONS USED

jeff jeffy answered 6 months ago
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