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2. State 1 2 3 Probability 0.35 0.45 0.20 Return (stock A) 10% -5% -4% Return (stock B) 15% -7% 12% Return (stock C) 20%

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2. State 1 2 3 Probability 0.35 0.45 0.20 Return (stock A) 10% -5% -4% Return (stock B) 15% -7% 12% Return (stock C) 20% 10% -6% WA = 10%, WB = 55%, Wc = 35% Calculate the portfolio standard deviation. Show your work

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