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You are going to make a portfolio consisting of 60 % of Bank of America Stock and 40 % of Caterpillar Stock. You also have

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You are going to make a portfolio consisting of 60 % of Bank of America Stock and 40 % of Caterpillar Stock. You also have the following information: State i Probability of State i BOA Return Caterpillar Return Boom 50 % 20 % 17% Bust 50 % 0 % -1 % What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals) Answer: You are going to make a portfolio consisting of 60 % of Bank of America Stock and 40 % of Caterpillar Stock. You also have the following information: State i Probability of State i BOA Return Caterpillar Return Boom 50 % 20% 17% Bust 50 % 0 % -1 % What is the standard deviation for the portfolio? (Answer as a percentage and Round to 2 decimals)

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