You have $17,200 to invest and would like to create a portfolio with an expected return of 11 percent. You can invest in Stock K with an expected return of 9.9 percent and Stock L with an expected return of 13.5 percent. How much will you invest in Stock K?

$10,949.07

$4,598.61

$7,007.41

$5,255.56

$11,944.44

Based on the following information, what is the standard deviation of returns?

State of Economy Probability of State
of Economy Rate of Return if
State Occurs
Recession .23 ? .111
Normal .26 .126
Boom .51 .236
27.76%

19.63%

19.09%

13.82%

25.45%