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What is the standard deviation of a portfolio that is invested 60% in stock A and 40% in stock B, given the following information? Economic
What is the standard deviation of a portfolio that is invested 60% in stock A and 40% in stock B, given the following information?
Economic State | Probability of State | Return on Stock A | Return on Stock B |
|
Normal | 50% | 13% | 3% |
|
Recession | 50% | -8% | 8% |
|
A) 3.87%
B) 4.13%
C) 4.86%
D) 5.30%
E) 5.72%
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