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Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock Boom 45% 0.18 0.40 0.22 Bust

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Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock Boom 45% 0.18 0.40 0.22 Bust 55% -0.06 -0.30 -0.05 Asset Weights 50% 25% 25% What is the standard deviation of the portfolio

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