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An investor determines the following historical returns on stocks and bonds: Stock Mkt Bond Mkt Economy Probability Return ecessIon Normal Boom 15% 70% 15% -15%

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An investor determines the following historical returns on stocks and bonds: Stock Mkt Bond Mkt Economy Probability Return ecessIon Normal Boom 15% 70% 15% -15% 15% 25% 12% 896 0% The standard deviation risk of the stock market is: The standard deviation risk of the bond market is: What are the implications for investors

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