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The following information is available about stock A and B regarding their returns and standard deviation: p A B recession 0,2 4 20 average 0,5

The following information is available about stock A and B regarding their returns and standard deviation:

p A B

recession 0,2 4 20

average 0,5 6 4

boom 0,3 15 2

where p is the probability of the economic state and other table data are estimated returns.

Determine the risky portfolio standard deviation that includes 29% stock A, if all the available money is invested in stocks A and B (100% portfolio).

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