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Consider following information: Probability of the state of economy Rate of return if state occurs Stock 1 Stock 2 Recession 0.2 (P9 % R9 %

Consider following information: Probability of the state of economy Rate of return if state occurs Stock 1 Stock 2 Recession 0.2 (P9 % R9 % Boom 0.8 (P5 % R)9 % Calculate the standard deviation of a return on a Portfolio1 invested 40% in Stock 1 and 60% in Stock 2. Express your answer as %.

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