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(LO 8.4) To achieve a zero standard deviation for a portfo- lio, calculate the weights of stock A and stock B, assuming the correlation coefficient

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(LO 8.4) To achieve a zero standard deviation for a portfo- lio, calculate the weights of stock A and stock B, assuming the correlation coefficient is-1. 15. State of the Economyof Occurrence High growth Moderate growth Recession Expected Return on Stock A in This State 40% 20% -10% Expected Return on Stock B in This State 55% 25% 20% Probability 25% 20% 55%

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