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Please use the information in the following table below to answer the questions below. Stock A's Stock B's Stock C's State Probability returns returns
Please use the information in the following table below to answer the questions below. Stock A's Stock B's Stock C's State Probability returns returns returns Boom 50% 20% -20% 20% Recession 50% -20% 20% -20% In answering the questions below, please show your work. 1. What is the standard deviation of the returns on Stock A? (5 points) 2. If you invest equally in Stocks A and B (50% of capital invested in Stock A, and 50% in Stock B), what is the standard deviation of the returns on the portfolio? (5 points) 3. If you invest equally in Stocks A and C, what is the standard deviation of the returns on the portfolio? (5 points) Edit Format Table 2pt Paragraph V BIUA 2 T
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