Question 14 do 1.00 The Stock X is expected to earn 0.32 in boom, 0.16 in normal economy and 0.18 in bust. Stock Y is expected to eam in boom. 6.12 in normal economy and -0.08 in bust. The probability of a boom is 5 percent, the probability of a normal economy is 91 percent and the probability of buntis 4 percent. What is the standard deviation of the returns on a portfolio that is invested in Stock X and Stock if the 30 percent of the portfolio is Invested in Stock X and 70 percent is invested in Stock Y? a. 718 percent b. 4.32 percent c. 6.24 percent d. 5.15 percent e. 8.46 percent Next pe Previous page