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wo investors each have $50,000 available to invest. Investor 1 has formed a portfolio where she has invested $20,000 of her funds in the riskfree
wo investors each have $50,000 available to invest. Investor 1 has formed a portfolio where she has invested $20,000 of her funds in the riskfree security and the remaining funds in the market portfolio. Investor 2 has formed a portfolio by borrowing $30,000 at the riskfree rate and investing all the available funds in the market portfolio. If the market portfolios standard deviation is 30%, calculate the portfolio standard deviations of their respective portfolios. Show all calculations.
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