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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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