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A portfolio consists of 17% in Stock A, 50% in Stock B, and the remainder in Stock C. Based on the following information, what is
A portfolio consists of 17% in Stock A, 50% in Stock B, and the remainder in Stock C. Based on the following information, what is this portfolio's standard deviation?
State of Economy | Probability of State | Return if State Occurs | ||||||||||
of Economy | ||||||||||||
Stock A | Stock B | Stock C | ||||||||||
Normal | .76 | 10.40% | 3.80% | 12.80% | ||||||||
Boom | .24 | 17.70% | 25.70% | 17.20% | ||||||||
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