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3. Suppose you have invested your wealth in a risk-parity portfolio with stocks from two companies, firm A and firm B. If the volatility of

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3. Suppose you have invested your wealth in a risk-parity portfolio with stocks from two companies, firm A and firm B. If the volatility of stock returns for firm A is 0.25 and the risk parity portfolio weights for firms A and B are 0.25 and 0.75, respectively, then what is the volatility of stock returns for firm B? A) B) C) D) E) 0.2886 0.7500 0.1443 0.4330 None of the above

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