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Use the following table of states of the economy and stock returns to calculate the percentage standard deviation of a portfolio of a portfolio of
Use the following table of states of the economy and stock returns to calculate the percentage standard deviation of a portfolio of a portfolio of 40 percent Roll and the rest in Ross.
Security if State | Returns Occurs | ||
Prob of State of Economy | Roll | Ross | |
Bust | 0.5 | -6% | 32% |
Boom | ? | 38 | 9 |
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