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Consider the following probability distribution for stocks A and B: Probability of Returns if State Occurs State of Economy State of Economy Stock A Stock

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Consider the following probability distribution for stocks A and B: Probability of Returns if State Occurs State of Economy State of Economy Stock A Stock B Boom 30% 15% 30% Normal 70% 6% -10% If you invest 40% of your money in A and 60% in B, what is the standard deviation on your portfolio? 9.56% 15.99% O 11.48 percent 12.65% 14.68%

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