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Consider the following probability distribution and returns for the stocks A and B. Compute the portfolio expected risk assuming your investment in each stock is

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Consider the following probability distribution and returns for the stocks A and B. Compute the portfolio expected risk assuming your investment in each stock is according to the dollar investment shown in the table below. Scenario Probability Stock A Return Stock B Return (%) (%) 16.0% 12.0% 1 0.1 2 0.4 8.0% 8.0% 3 0.5 3.0% 5.0% 70% investment in Stock A investment in Stock B 30% 1.1994% 3.1063% 3.46329 0.1199%

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