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4) Consider a portfolio that consists of an equal investment in 25 firms. For each of these forms, there is a 50% probability that the

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4) Consider a portfolio that consists of an equal investment in 25 firms. For each of these forms, there is a 50% probability that the firms will have a 18% return and a 50% that they will have a -8% return. Each of these firms' returns is independent of all others. The standard deviation of this portfolio is closest to: 8.8% 13.0% 2.6% 4.2%

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