The following returns have been estimated for Security T andSecurity 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 invest70% in Security T and 30% in Security S. What is the standarddeviation of the rate of return of the portfolio? Round your answerto the nearest tenth of a percent.
| | A) 0.0% |
| | B) 4.5% |
| | C) 19.9% |
| | D) 59.7% |
