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An investor constructs a portfolio with a 50% allocation to a stock index and a 50% allocation to a risk free asset. The expected returns

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An investor constructs a portfolio with a 50% allocation to a stock index and a 50% allocation to a risk free asset. The expected returns i the risk-free asset and the stock index are 3% and 10%, respectively. The standard deviation of returns on the stock index is 14%. Calculate the expected standard deviation of the portfolio. 7.0% 9.0%. 10.5% 11.5% 13.0%

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