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Compute the portfolio standard deviation. You have invested $250,000 in each one of the four stocks. Probability of future state Stock A Stock B Stock
Compute the portfolio standard deviation. You have invested $250,000 in each one of the four stocks.
Probability of future state | Stock A | Stock B | Stock C | Stock D | |
Boom | 0.6 | 12% | 3% | -4% | 4% |
Bust | 0.4 | -6% | -1% | 5% | -2% |
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