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Question 4 (10 marks) Jim Roger is considering a small portfolio of two stocks and has provided you with the following information: Probability Condition Boom

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Question 4 (10 marks) Jim Roger is considering a small portfolio of two stocks and has provided you with the following information: Probability Condition Boom Normal Recession 0.15 Company A 21% 12% 3% Company B 10% 7% 8% 0.75 0.10 Required: What are the expected return and standard deviation for the portfolio with an investment of $10,000 (Company A) and $10,000 (Company B)

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