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Use the following table: States of the Economy Boom Steady Recession 1 Probability of the State 0.3 0.5 0 .2 3-Month T-Bill 4% 4% 4%

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Use the following table: States of the Economy Boom Steady Recession 1 Probability of the State 0.3 0.5 0 .2 3-Month T-Bill 4% 4% 4% Large-Company Stock 10% 5% 0% Small-Company Stock 30% 20% 10% Estimate the difference between the standard deviations for large- and small-company stocks. Which is larger and by how much? Small company stocks by 3.50% O Small company stocks by 49.00% Large company stocks by 12.25% Small company stocks by 36.75%

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