Use the table to answer the question. A financial institution has outstanding loans to two industries: Industry 1 and Industry 2. Use Moody's Analytics Portfolio Manager Model to calculate the portfolio standard deviation. (Round intermediate answers to 4 decimal places).

Group of answer choices

1.41%

5.06%

7.85%

Not enough information.

Loans Portfolio Weight Annual Spread Fees Earned Loss to Fl given Default Expected Default Frequency Correlation Industry 1 0.65 4.25% 3.0% 50% Industry 2 0.35 2.75% 2.5% 20% 5.5% 3% 0.30 Loans Portfolio Weight Annual Spread Fees Earned Loss to Fl given Default Expected Default Frequency Correlation Industry 1 0.65 4.25% 3.0% 50% Industry 2 0.35 2.75% 2.5% 20% 5.5% 3% 0.30