Your client, bo regard, holds a complete portfolio that consists of a portfolio of risky assets ( p) and t-bills. the information below refers to these assets. e(rp) 12.00 % standard deviation of p 7.20 % t-bill rate 3.60 % proportion of complete portfolio in p 80 % proportion of complete portfolio in t-bills 20 % composition of p: stock a 40.00 % stock b 25.00 % stock c 35.00 % total 100.00 % what is the standard deviation of bo's complete portfolio?
a.10.32%
b. 5.28%
c. 9.62%
d. 8.44%
e. 7.58%

The correct answer is 5.76%

Explanation:

Std. Dev. of C = (80/100) × 7.20% + (20/100) × 0%

Std. Dev. of C = (80/100) × 7.20%

Std. Dev. of C = .8 × 7.20% = 5.76%.

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.