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Using scenarios analysis, you determined that the expected return for the Endeavor ESG fund is 20%, and the standard deviation of this fund is 40%.
Using scenarios analysis, you determined that the expected return for the Endeavor ESG fund is 20%, and the standard deviation of this fund is 40%. A recently retired client of your financial advisory firm wishes to allocate 70% of their wealth to T-bills, and 30% to this Endeavor ESG fund. What would be the standard deviation of this complete portfolio? Assume T-bills yield 2%.
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