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Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 15% and a risk-free

Suppose you invest equal amounts in a portfolio with an expected return of 16% and a standard deviation of returns of 15% and a risk-free asset with an interest rate of 4%; calculate the standard deviation of the returns on the resulting portfolio:

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9%

20%

15%

7.5%

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