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The following table reports forecasted returns for the stock of two different companies under three possible states of the economy: State Probability Stock A Stock

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The following table reports forecasted returns for the stock of two different companies under three possible states of the economy: State Probability Stock A Stock B Expansion 35% 12.83% 17.14% Average 55% 9.12% 6.90% Recession 10% -0.84% -5.39% What is the standard deviation on a portfolio that consists of 25% of funds allocated to Stock A and the rest in Stock B? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations)

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