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The stock market comprises two stocks, A and B. The table below gives next year's returns of the two stocks, RA and RB, depending on

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The stock market comprises two stocks, A and B. The table below gives next year's returns of the two stocks, RA and RB, depending on the state of the world, and the probability of each state of the world. What is the variance of a portfolio combining A and B and offering an expected return of 7.2%

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