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John is considering two investment opportunities. He can invest in Firm 1 or Firm 2. If he forms a 50/50 portfolio, what is the expected
John is considering two investment opportunities. He can invest in Firm 1 or Firm 2. If he forms a 50/50 portfolio, what is the expected return and standard deviation of his portfolio?
| State of the Economy | Probability of the State | Firm 1 | Firm 2 |
| Sunny | .50 | 25% | 0% |
| Rainy | .50 | 0% | 25% |
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The New CFO Financial Leadership Manual
Authors: Steven M. Bragg
3rd Edition
0470882565, 978-0470882566
