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14. Suppose you have a portfolio consisting of four stocks: Stock A, Stock B, Stock C, and Stock D. The following amounts are invested in
14. Suppose you have a portfolio consisting of four stocks: Stock A, Stock B, Stock C, and Stock D. The following amounts are invested in each stock: Stock A = $60,000; Stock B = $80,000; Stock C = $25,000; and Stock D = $35,000. State of Economy Probability of State Stock A Stock B Stock C Stock D Boom 60% 15% 9% 4% -10% Normal ? 8% 6% 0% -3% Recession 10% -5% 1% -12% 9% What is the portfolio standard deviation
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