You had all of your money invested in Dunkin' Brands Group. After taking FINA 363, you realize you should diversify.

You had all of your money invested in Dunkin' Brands Group. After taking FINA 363, you realize you should diversify. You want move half (50%) of your money into Whole Foods, and leave the other half in Dunkin' Brands Group. Use the information below to answer the following two questions about a 50/50 blended portfolio. Expected Return Standard Deviation Dunkin' Brands Group 10% 18% Whole Foods 8% 15% Correlation between Dunkin' Brands Group and Whole Foods 0.55 

What is the standard deviation of the 50/50 blended portfolio? a. 10.5% b. 11.5% c. 12.5% d. 13.5% e. 14.5%