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You are going to make a portfolio consisting of 90 % of Bank of America Stock and 10 % of Caterpillar Stock. You also have

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You are going to make a portfolio consisting of 90 % of Bank of America Stock and 10 % of Caterpillar Stock. You also have the following information: State Probability of State BOA Return Caterpillar Return Boom 10 % 27 % 28 % Bust 90 % -6% 2% 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 90 % of Bank of America Stock and 10 % of Caterpillar Stock. You also have the following information: State Probability of Statei BOA Return Caterpillar Return Boom 10 % 27 % 28 % Bust 90 % -6 % 2 % What is the standard deviation for the portfolio? (Answer as a percentage and Round to 2 decimals)

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