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Suppose you invest in two assets - asset A and a risk free asset. Asset A has a mean return of 6 % and the

Suppose you invest in two assets

-

asset A and a risk free asset. Asset A has a mean return of

6 %

and the risk free asset has a mean return of

2 % .

Asset A

'

s returns have a standard deviation of

8 .

You invested

70 %

in asset A

.

What is the overall standard deviation of your portfolio?

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