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Lets assume the following about the possible yields on assets A and B: Scenario Probability of Scenario Yield on asset A Yield on asset B
Lets assume the following about the possible yields on assets A and B:
Scenario | Probability of Scenario | Yield on asset A | Yield on asset B |
I | 10% | -10% | -20% |
II | 20% | 16% | 18% |
III | 40% | 25% | 25% |
IV | 30% | 3% | 29% |
Please caclulate the standard deviation of the yields of assets A and B and present the standard deviation of the riskiest asset as an answer.
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