A bank is considering adding security brokerage services to the services it offers. It has estimates that the edpected return and standard deviation of its traditional service are 6% and 14% respectively . It has estimated that the edpected return and standard deviatio of its new securities brokerage services are 14% and 24% respectively. The correlation between these services has been estimated to be -.4 and the bank estimates that 60% of its business will be from traditional services and 40% from the nee services. What is the standard deviation of the new combined firm?

A) 24%

B) 18%

C) 15.07%

D) 14%

E) 9.91%

A bank is considering adding security brokerage services to the services it offers. It has estimated that the expected return and standard deviation of its traditional service are 6% and 14% respectively. It has estimated that the expected return and standard deviation of its new securities brokerage services are 14% and 24% respectively. The correlation between these services has been estimated to be -.4 and the bank estimates that 60% of its business will be from traditional services and 40% from the new services. What is the standard deviation of the new combined firm? 24.00% 18.00% 15.07% 14.00% 9.91%